$(4$ points$)$ Dividend Allocation

Durden Co$.$ has $$10$ par value, $12\%$ cumulative preferred stock. There are $10,000$ shares issued and outstanding of the preferred stock. The company also has $100,000$ shares of $$1$ par value common stock. No dividends had been paid in the years $2003,2004,2005,$ and $2006.$ In $2007,$ the company paid $$35,000$ in dividends. In $2008,$ the company paid $$65,000$ in dividends. Determine the allocation of dividends between preferred and common stockholders for $2007$ and $2008.$

$\backslash$table$[[$Year$,$Preferred Stock,Common Stock,Carryover$],[2003,,,],[2004,,,],[2005,,,],[2006,,,],[2007,,,],[2008,,,],[$Totals$,,,]]$

$(4$ points$)$ Equity transactions

For each of the following independent transactions a through d$,$ prepare the necessary journal entry $($if necessary$)$:

$($a$)$ Declared and paid a $$0\mathrm{.}40$ per share cash dividend on $100,000$ shares of preferred stock outstanding.

$($b$)$ Declared and distributed a $10\%$ stock dividend on $400,000$ shares of $$5$ par value common stock outstanding. Market price per common share on this date was $$25.$

$($c$)$ Declared and distributed a $2-$for$-1$ stock split on $500,000$ shares of $$10$ par value common stock outstanding.

$($d$)$ Declared and distributed a $40\%$ stock dividend on $400,000$ common shares of $$5$ par value common stock outstanding. Market price per common share on this date was $$20.$

$\backslash$table$[[$Accounts$,$Debits,Credits$],[$a$.,,],[$b$.,,],[$b$.,,],[$d$.,,]]$