January 1, 2018, Apple is authorized to issue 200,000 shares$1.00 par common stock and 5,000 shares $200 par 5% cumulative andnon-participating preferred stock. The transactions took place in2018
Jan 14: issue 5,000 shares of common stock at $17 per share
Feb 2: issue 4,000 shares of preferred stock in exchange forbuilding with a fair market value of $800,000
July 6: Re-purchased 2,000 shares of common stock at $18 pershare (cost method)
Aug 15: sold 2,000 of the treasury shares at $19 per share
Dec 31: declared preferred dividends and a common stockdividends of $2.00 per share
Dec 31: close the income summary account ($150,000 of netincome)
Prepare Journal entries for each transaction and prepare thestatement of changes in OE for the 2018 year end.
