Metzler Design has the following information regarding its preferred and common stock:
Preferred stock, $50 par, 10 percent cumulative; 250,000 shares authorized; 100,000 shares issued and outstanding Common stock, $2 par; 2,000,000 shares authorized; 1,000,000 shares issued; 800,000 outstanding
As of December 31, 2011, Metzler was two years in arrears on its dividends. During 2012, Metzler declared and paid dividends. As a result, the common shareholders received dividends of $0.60 per share.
1. What was the total amount of dividends declared and paid?
2. What journal entry was made at the date of declaration?