The Annapolis Corporation’s stockholders’ equity accounts have the following balances as of January 1, 2018:
| 12% preferred stock, cumulative, $50 par (10,000 shares issued and outstanding) | $500,000 |
| Common stock, $10 par (100,000 shares issued and outstanding) | 1,000,000 |
| Additional paid-in capital: common | 1,000,000 |
| Retained earnings | 3,750,000 |
| Total stockholders’ equity | $6,250,000 |
Annapolis engaged in the following dividend transactions during 2018, 2019, and 2020:
| 2018: | Dividends are in arrears for 2016 and 2017. On December 1, 2018, the annual cash dividend plus the dividends in arrears were declared on the preferred stock. In addition, a $1.50 per share dividend was declared on the common stock. The dividends were paid on December 31, 2018. |
| 2019: | On December 1, 2019, the annual cash dividend on the preferred stock was declared. The dividend was paid on December 31, 2019. |
| On December 10, a 30% stock dividend was declared on the common stock, distributable on January 25, 2020. The market price per share for the common stock on December 10, 2019, was $28. | |
| 2020: | On January 25, 2020, the stock dividend declared on December 10, 2019, was issued. |
| On December 1, the annual cash dividend on the preferred stock was declared; it is payable on January 15, 2021. | |
| In addition, on December 1, a 10% stock dividend was declared on the common stock, distributable on January 20, 2021. The market price per share for the common stock on December 1, 2020, was $23. |
No other stock transactions took place during 2018, 2019, or 2020.
Required:
| Prepare the entries to record the dividend transactions for 2018, 2019, and 2020. |
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