The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $270,000 in the current year. It also declared and paid dividends on common stock in the amount of $1.30 per share. During the current year, Sneer had 1 million common shares authorized; 470,000 shares had been issued; and 253,000 shares were in treasury stock. The opening balance in Retained Earnings was $730,000 and Net Income for the current year was $230,000. Required: Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock. Using the information given above, prepare a statement of retained earnings for the year ended December 31. Prepare a journal entry to close the dividends account.