Answer:
1.
December 15 2016
Dr Retained Earnings 51,310
Cr Dividend Payable - Preferred stock 2,560
Cr Dividend Payable - Common stock 48,750
(to record dividend declaration by Frenchroast Company)
2.
January 4, 2017
Dr Dividend Payable - Preferred stock 2,560
Dr Dividend Payable - Common stock 48,750
Cr Cash 51,310
( to record cash dividend payment Frenchroast Company)
Explanation:
Working notes:
For entry in December 15,2016:
Preferred stock dividend = 2% * par value = 2% * 128,000 = $2,560.
Common stock dividend = dividend per share * number of shares outstanding = 0.75 * 65,000 = $48,750.