The 2006 annual report for Sneers Corporation disclosed that the company declared and paid preferred dividends in the amount of $119.9 million in 2006. It also declared and paid dividends on common stock in the amount of $2 per share. During 2006, Sneers had 1,000,000,000 shares of common authorized; 387,570,300 shares had been issued; 41,670,300 shares were in treasury stock. The balance in Retained earnings was $1,554 million on December 31, 2005, and 2006 Net income was $858 million.

Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock.

the perferred stock is 119.9 but whats the common stock

Onle stock that is issued and outstunding will receive dividends.

Authorized shares does not mean much.

Treasury shares are share of the common stock that the company bought back.

Issued and outstanding is issued - treasury stock.

The journal entries will be:

Decrlaration Date:
Debit Retained Earnings for the amount
Credit Devidends Payable for the amount

Payment Date:

Debit Dividends Payable for the amount
Credit Cash for the amount.