Retained earnings and distribution of dividends Knudsen Corporation, LLC was organized on the 1st. January 2016. During its first year of operations, the corporation issued 2,000 shares of US$50 par value of preferred stock and 100,000 shares of US$10 par value of common stock. As of December 31, the corporation declared the following dividends paid in cash in current currency: 2016, US$5,000; 2017, $12,000; and 2018, US$28,000. Instructions:
1) Show the dividend allocation for each class or type of stock, assuming the preferred stock dividend is 6% and is noncumulative?
2) Show the dividend allocation for each class or type of stock, assuming the preferred stock dividend is 7% and is noncumulative?
3) Present the corresponding records in the 'Journal' that reflect the dividends of the preferred shares as of December 31 under part (b)?