Response to the following problem:
Vogue Skincare has 5,000 outstanding shares of 5%, $20 par preferred stock and 100,000 shares of $1.50 par common stock outstanding. During a three year period, Vogue declared and paid cash dividends as follows: 2010 of $4,000 2011 of $10,000; and 2012 of $20,000.
1. Compute the total dividends to preferred and common for each of the three years if the preferred stock is:
a. Cumulative
b. Non cumulative
2. For case 1a, journalize the declaration of the 2012 dividend on December 22, 2012, and payment on January 14, 2013.