All applicable Problems are available in Connect. Common and preferred stock-issuances and dividends Homestead Oil Corp. was incorporated on January 1, 2022, and issued the following stock for cash: - 600,000 shares of no-par common stock were authorized; 120,000 shares were issued on January 1,2022 , at \$26 per share. - 100,000 shares of $100 par value, 5.5% cumulative, preferred stock were authorized; 70,000 shares were issued on January 1,2022 , at $109 per share. - Net income for the years ended December 31, 2022 and 2023 was $2,100,000 and $4,700,000, respectively. - No dividends were declared or paid during 2022. However, on December 27, 2023 , the board of directors of Homestead declared dividends of $1,190,000, payable on February 11, 2024, to holders of record as of January 16, 2024. Required: a. Use the horizontal model (or write the entry) to show the effects of: 1. The issuance of common stock and preferred stock on January 1, 2022. 2. The declaration of dividends on December 27, 2023 . 3. The payment of dividends on February 11, 2024. b. Of the total amount of dividends declared during 2023 , how much will be received by preferred shareholders