A&K Corporation was established in 2016. A&K hasauthorized 50,000 shares of common stock, par value $1 per share,and 10,000 authorized shares of 9% preferred stock, par value $20per share. Net Income for 2016 was $245,000. The followingtransactions took place during 2016: January 1 Issued 40,000 sharesof common stock for cash at $30 per share. February 1 Issued 7,000shares of preferred stock for cash of $60 per share. June 1Repurchased 8,000 shares of L&D common stock at $25 per share.August 1 Reissued 1,000 shares of the treasury stock at $26 pershare. December 1 Declared cash dividends on Common Stock onlytotaling $65,000 to be paid on January 15, 2017 to owners on recordas of December 31, 2016. Required: Please show calculationsa)Prepare journal entries for each of the above transactions. b)Calculate Ending Retained Earnings c.)Prepare the Stockholders'Equity section of the Balance Sheet in good format.
