Hoop It Up has two classes of stock authorized: 7%, $20 par preferred and $1 par value common. The following transactions affect stockholders’ equity during 2015, its first year of operations:
February 2 Issue 1 million shares of common stock for $20 per share.
February 4 Issue 50,000 shares of preferred stock for $21 per share.
June 15 Purchase 100,000 shares of its own common stock for $18 per share.
August 15 Reissue 75,000 shares of treasury stock for $23 per share.
November 1 Declare a cash dividend on its common stock of $1 per share and a $70,000 (7% of par value) cash dividend on its preferred stock payable to all stockholders on record on November 15. Hint: Dividends are not paid on treasury stock.
November 30 Pay the dividends declared on November 1.

Required:
1. Record each of these transactions.
2. Prepare the stockholders’ equity section of the balance sheet as of December 31, 2015. Net income for the year was $3,200,000.