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Problem (1.) Prepare journal entries for the following transactions (5 pts per journal entry for a total of 75 pts.) Opening Data: P/S $100 par, guaranteed 3% dividend, 0 shares outstanding C/S $2.00 par, 0 shares outstanding Jan. 1. Issued 50,000 shares of Common Stock to purchase a building worth $600,000. Jan. 2. Issued 3,000 shares of Preferred Stock to purchase Land worth $412,000. Jan. 3. Sold 70,000 shares of Common Stock for $15 per share. Feb. 4. Purchased 2,000 shares of our own Common Stock for $12/share. Mar.5. Declared an annual cash dividend on the Preferred Stock to shareholders of record on March 15 to be paid on March 29. Mar. 6. Declared a $0.20 per share Common Stock cash dividend to shareholders of record on March 15 to be paid March 30. Mar. 15 Record Date(s) Mar. 29 Paid the Preferred Stock cash dividend declared on March 5. Mar. 30 Paid the Common Stock cash dividend declared on March 6. May 15 Declared a 5% Common Stock Dividend, market value of each share is $18 per share to shareholders of record May 21 to be issued May 31. May 31 Issued the Common Stock Dividend declared on May 15. July 15 Sold 800 shares of the Treasury Stock purchased above on Feb. 4 for $16/sh. Aug. 16 Declared a Common Stock 2 for 1 stock split, NO J/E needed BUT what 2 items change and what are the 2 new values due to this stock split- there are 2 answers here?? Sept. 17 Sold 10,000 shares of C/S for $6 per share

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