Thoughtful Comfort specialist, Inc, reported the following stockholder’s equity on its balance sheet on June 30, 2018.

                                      Stockholder’s Equity

Paid-In Capital:

Preferred Stock-5%, ? Par Value; 650,000 shares

authorized, 325,000 shares issued and outstanding    $ 1,300,000

Common Stock-$1 Par Value; 7,000,000 shares

authorized, 1,320,000 shares issued and outstanding     1,320,000

Paid-In Capital in Excess of Par-Common                        2,700,000

Total Paid-in Capital                                                         5,320,000

Retained Earnings                                                           11,800,000  

Total Stockholder’s Equity                                            $ 17,120,000

                                             Requirment

Question: No preferred dividends are in arrears. Jounalize the declaration of a $700,000 dividend at June 30, 2018, and the payment of the dividend on July 20, 2018. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required.