$($b$)$

Your answer is correct.

Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is $8\%$ and cumulative. $($c$)$

Journalize the declaration of the cash dividend at December $31,2023,$ under part $($b$).($Credit account titles are automatically

indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $O$ for the

amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31$Crane Corporation was organized on January $1,2021.$ During its first year, the corporation issued $2,050$ shares of $$50$ par value preferred stock and $101,000$ shares of $$10$ par value common stock. At December $31,$ the company declared the following cash dividends: $2021,$ $$5,300$; $2022,$ $$13,500$; and $2023,$ $$28,500.$