The books of Marigold Corporation carried the following account balances as of December $31,2025.$ Account Titles and Explanation

For preferred dividends in arrears:

For preferred current year dividend:

For common share dividend:

b$.$ Could Marigold Corporation give the preferred stockholders $2$ years' dividends and common stockholders a $30$ cents per share

dividend, all in cash?

The company decided not to pay any dividends in $2025.$

The board of directors, at their annual meeting on December $21,2026,$ declared the following: "The current year dividends shall be $6\%$

on the preferred and $$0\mathrm{.}30$ per share on the common. The dividends in arrears shall be paid by issuing $1,420$ shares of treasury stock."

At the date of declaration, the preferred is selling at $$84$ per share, and the common at $$12$ per share. Net income for $2026$ is

estimated at $$70,200.$

a$.$ Prepare the journal entries required for the dividend declaration and payment, assuming that they occur simultaneously. $($List all

debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no

entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Show all imagesShow all images