J&J Corporation had the following stock issued and outstanding at January 1, 2013:
1. 200,000 shares of $10 par common stock.
2. 8,000 shares of $100 par, 4 percent, noncumulative preferred stock. On May 10, J&J Corporation declared the annual cash dividend on its 8,000 shares of preferred stock and a $.50 per share dividend for the common shareholders. The dividends will be paid on June 15 to the shareholders of record on May 30.
Required:
a. Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders.
b. Prepare general journal entries to record the declaration and payment of the cash dividends (be sure to date your entries).