E$11-11($Algo$)$ Recording Dividends and Preparing a Statement of Retained Earnings $[$LO $11-2,$ LO $11-3]$

The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $$250,000$ in the current year. It also declared and paid dividends on common stock in the amount of $$1\mathrm{.}50$ per share. During the current year, Sneer had $1$ million common shares authorized; $450,000$ shares had been issued; and $235,000$ shares were in treasury stock. The opening balance in Retained Earnings was $$750,000$ and Net Income for the current year was $$250,000.$

Required:

Prepare journal entries to record the declaration, and payment, of dividends on $($a$)$ preferred and $($b$)$ common stock.

Using the information given above, prepare a statement of retained earnings for the year ended December $31.$

Prepare a journal entry to close the dividends account.

Complete this question by entering your answers in the tabs below.

Prepare journal entries to record the declaration, and payment, of dividends on $($a$)$ preferred and $($b$)$ common stock. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

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Record the declaration of a cash dividend of $$250,000$ to the preferred stockholders.