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In: AccountingProblem 4 - DividendCalculations & Journal Entries for EquityPart A Directions: ShorelineCompany has...Problem 4 - DividendCalculations & Journal Entries for EquityPart A Directions: ShorelineCompany has 10,000 shares outstanding of $50 par value, 5%cumulative preferred stock and 50,000 shares of $2 par value commonstock. The company declared cash dividends of $110,000.Dividend Calculation #1: If noarrearage on the preferred stock exists, how much in totaldividends and in dividends per share is paid to each class ofstock?Dividend Calculation #2: Ifone year’s dividend arrearage on the preferred stock exists, howmuch in total dividends and in dividends per share is paid to eachclass of stock?Part B Directions: Preparejournal entries for the following 2016 equity relatedtransactions.Feb 1Issued 10,000 shares of $5 parvalue common stock at $30 cash per share.Jul 1Issued 10,000 shares of $25par value preferred stock at $120 cash per shareAug 1Purchased back 3,000 shares ofcommon stock at $31 cash per share.Oct 1Resold 1,200 shares oftreasury stock at $32 cash per share.DateDescriptionDebitCredit