Foley corporation has the following capital structure at the beginning of the year:

4% preferred stock, $50 par value, 20,000 shares authorized,

6,000 shares issued and outstanding $300,000
common stock, $10 par value, 60,000 shares authorized,
40,000 shares issued and outstanding 400,000paid-in capital in excess of par 110,000
total paid-in capital 810,000
retained earnings 440,000
total stockholders' equity $1,250,000

instructions

(a) record the following transactions which occurred consecutively (show all calculations).

1. a total cash dividend of $90,000 was declared and payable to stockholders of record. record dividends payable on common and preferred stock in separate accounts.

2. a 15% common stock dividend was declared. the average fair value of the common stock is $22 a share.