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XD7,IncHas 50,000 Shares of Common Stock Outstanding and 2,000 Shares

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XD7,Inc.has 50,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding.The common stock has a $1.00 par value.The preferred stock has a $100 par value,a 5% dividend rate,and is noncumulative.On October 31,2018,the company declares the annual preferred dividend and dividends of $0.25 per share for common.Prepare the journal entry for the declaration of dividends.Omit explanation.


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