Naxion Corporation began operations on January 2, 2018, and had the following transactions during the year:

Jan. 2 Issued 250,000 shares of $1 par value common stock at $45 per share. Total shares authorized: 1,000,000.
Feb. 5 Issued 10,000 shares of $50 par, 5% cumulative preferred stock at $65 per share. Total shares authorized: 25,000.
Mar. 15 Issued 150,000 shares of $1 par value common stock at $35 per share.
Apr. 2 Declared a $2.50 per share cash dividend on its preferred stock to be paid on April 25. Date of record is April 10.
3 Declared a $0.10 per share cash dividend on its common stock to be paid on April 26. Date of record is April 10.
Jun. 1 Declared a 2% stock dividend on all common stock outstanding. Current market price of the stock was $48 per share. Date of record is June 15.
30 Distributed common stock dividend to shareholders.
Oct. 10 Purchased 2,500 shares of treasury stock—common at $52 per share.
Nov. 15 Sold 2,000 shares of treasury stock—common at $54 per share.

Requirements
1. Journalize Naxion’s transactions for 2018.
2. Prepare the stockholders’ equity section of the balance sheet as of December 31, 2018, including the heading. Assume Naxion had net income of $15,000,000 during 2018. This is the first year of operations.
3. Determine Naxion’s earnings per share for 2018, rounded to two decimal places. For the average number of common shares outstanding, average the number of shares outstanding on January 2 and December 31.
4. Assuming Naxion’s market value per common share as of December 31, 2018, was $55, calculate Naxion’s price/earnings ratio for 2018, rounded to two decimal places.