Lobo Corporation - Preferred and common stock dividends

1.      Lobo Corporation was organized on january1, 2010. During its first year, the corporation issued 60,000 shares of $12 par value preferred stock and 400,000 shares of $3 par value common stock. No dividends were declared in 2010, but dividends were declared on December 31 for the next three years as follows:

Instructions

(a)    Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and cumulative.

(b)Journalize the declaration of the cash dividend at December 31, 2013.