Journal Entry for:

Oct. 30 - Declared cash dividends totaling $100,000. This is the second year that the corporation is in business and no dividends were declared during the first year of operations.

NOTE: The journal entry needs to reflect the payable to preferred and the payable to common.

Preferred 1% stock, cumulative, $50 par(200,000 shares authorized) $3,000,000

Paid-in capital in excess of par - preferred stock $180,000

Common stock, $15 par (900,000 share authorized) $9,750,000

Paid-in capital in excess of par - common stock $1,500,000

Retained Earnings $15,000,000