(a) prepare the journal entries required for the dividend declaration and payment, assuming that they occur simultaneously.

(B) could Conchita corporation give the preferred stockholder's 2 years dividends and common stockholders a 30 cents per share dividend, all in cash?

4 7 P15-7 (Cash Dividend Entries) The books of Conchita Corporation carried the following account balances as of December 31, 2014 Cash Preferred Stock (6% cumulative, nonparticipating, $50 par) Common Stock (no-par value, 300,000 shares issued) Paid-in Capital in Excess of Par-Preferred Stock Treasury Stock (common 2,800 shares at cost) Retained Earnings $ 195,000 300,000 1,500,000 150,000 33,600 105,000 dividends in 2014. The board of directors, at their annual meeting on December 21, 2015, declared the following: "The current year dividends shall be 6% on the preferred and $.30 per share on the common. The dividends in arrears shall be paid by issuing 1,500 shares of treasury stock." At the date of declaration, the preferred is selling at $80 per share, and the common at $12 per share. Net income for 2015 is estimated at $7 7,000