Question: Computing dividends on preferred and common stock and journalizing The following elements of stockholders' equity are from the balance sheet of Sandy Marketing Corp. at December 31, 2015:

Sandy paid no preferred dividends in 2015.

Requirements: 1. Compute the dividends to the preferred and common shareholders for 2016 if total dividends are $150,000 and assuming the preferred stock is noncumulative.

2. Record the journal entries for 2016 assuming that Sandy Marketing Corp. declared the dividends on July 1 for stockholders of record on July 15. Sandy paid the dividends on July 31.