Rainy Day Corporation has 50,000 $0.50 preferred shares and 600,000 common shares issued and outstanding. During a three-year period, Rainy Day Corporation declared and paid cash dividends as follows: 2017, $0; 2018, $114,000; and 2019, $260,000.

Required

1. Compute the total dividends to preferred shares and common shares for each of the three years if

a. Preferred shares are noncumulative.

b. Preferred shares are cumulative.

2. For requirement 1b, record the declaration of the 2019 dividends on December 22, 2019, and the payment of the dividends on January 12, 2020.