The shareholders' equity section of Polar Industries Ltd. at December 31, 2020, included the following:
$3 preferred shares, cumulative, 10,000 shares authorized, 9,000 shares issued $900,000
Common shares, 500,000 shares authorized, 400,000 shares issued 2,000,000
Dividends were not declared on the preferred shares in 2020 and are in arrears.
On September 15, 2021, the board of directors declared dividends on the preferred shares for 2020 and 2021, to shareholders of record on October 1, 2021, payable on October 15, 2021.
On November 1, 2021, the board of directors declared a $0.50 per share dividend on the common shares, payable November 30, 2021, to shareholders of record on November 15, 2021.
Instructions
Prepare the journal entries that should be made by Polar Industries for 2021. If no entry is needed write "No entry required."

Question

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The Answer of The shareholders' equity section of Polar Industries Ltd. at December 31, 2020, included the following:
$3 preferred shares, cumulative, 10,000 shares authorized, 9,000 shares issued $900,000
Common shares, 500,000 shares authorized, 400,000 shares issued 2,000,000
Dividends were not declared on the preferred shares in 2020 and are in arrears.
On September 15, 2021, the board of directors declared dividends on the preferred shares for 2020 and 2021, to shareholders of record on October 1, 2021, payable on October 15, 2021.
On November 1, 2021, the board of directors declared a $0.50 per share dividend on the common shares, payable November 30, 2021, to shareholders of record on November 15, 2021.
Instructions
Prepare the journal entries that should be made by Polar Industries for 2021. If no entry is needed write "No entry required."

The Shareholders' Equity Section of Polar Industries Ltd