Response to the following problem:
Colombia Coffee Company earned net income of $85,000 during the year ended December 31, 20X8. On December 15, Colombia declared the annual cash dividend on its 6% preferred stock (par value, $100,000) and a $0.50 per share cash dividend on its common stock (50,000 shares). Colombia then paid the dividends on January 4, 20X9.
Journalize for Colombia Company:
a. Declaring the cash dividends on December 15
b. Paying the cash dividends on January 4, 20X9.