ACCOUNTING-The books of Conchita Corporation carried the following account balances

QUESTION

The books of Conchita Corporation carried the following account balances as of December 31, 2014.Cash$ 202,200Preferred Stock (6% cumulative, nonparticipating, $50 par)300,000Common Stock (no-par value, 298,900 shares issued)1,494,500Paid-in Capital in Excess of Par—Preferred Stock181,600Treasury Stock (common 3,000 shares at cost)37,600Retained Earnings121,200The company decided not to pay any dividends in 2014.The board of directors, at their annual meeting on December 21, 2015, declared the following: “The current year dividends shall be 6% on the preferred and $0.30 per share on the common. The dividends in arrears shall be paid by issuing 1,800 shares of treasury stock.” At the date of declaration, the preferred is selling at $85 per share, and the common at $10 per share. Net income for 2015 is estimated at $77,910.(a) Prepare the journal entries required for the dividend declaration and payment, assuming that they occur simultaneously.

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