The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $220,000 in the current year. It also declared and paid dividends on common stock in the amount of $1.80 per share. During the current year, Sneer had 1 million common shares authorized; 420,000 shares had been issued; and 208,000 shares were in treasury stock. The opening balance in Retained Earnings was $780,000 and Net Income for the current year was $280,000.
Required:
a. Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock.

1) Journal entry

No.Account and explanation                 debit            credit

a Cash dividend                                  220000  

     Preferred Dividend payable                                   220000

(To record dividend declared)  

b Preferred dividend payable                220000  

       Cash                                                                   220000

(To record dividend paid)  

C Cash dividend (420000-208000)*1.8381600  

       Common Dividend payable                                    381600

(To record dividend declared)  

d Common Dividend payable                  381600  

         Cash                                                                     381600

(To record dividend paid)  

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!