Create a journal entry:
Common stock, par $8, outstanding shares, 30,000
Preferred stock, 6 percent, par $15, outstanding shares, 8,000
On October 1, 2009, the board declared dividends that would be paid, or issued, to stockholders' of record on December 1, 2009
Common stock: 10 percent common stock dividends, to be issued on Dec. 20, 09
Preferred Stock: cash dividends, 6 percent, payable dec. 20,09