Freid Corp. has outstanding 6,000 shares of $50 par value, 6% preferred stock, and 40,000 shares of $1 par value common stock. The company has $328,000 of retained earnings. At year-end, the company declares and pays the regular $3 per share cash dividend on preferred stock and a $2.20 per share cash dividend on common stock.

a. Using the financial statement effects template, illustrate the effects of these two dividend payments.

b. Prepare the journal entries for the two dividend payments.

c. Post the journal entries from b to the related T-accounts.