The annual report for Sneer Corporation disclosed that the company declared and paid preferreddividends in the amount of $100,000 in the current year. It also declared and paid dividends oncommon stock in the amount of $2 per share. During the current year, Sneer had 1 million common shares authorized; 300,000 shares had been issued; and 100,000 shares were in treasury stock.The opening balance in Retained Earnings was $800,000 and Net Income for the current year was$300,000.Required:1. Prepare journal entries to record the declaration, and payment, of dividends on ( a ) preferredand ( b ) common stock.2. Using the information given above, prepare a statement of retained earnings for the year endedDecember 31.3. Prepare a journal entry to close the Dividends account

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