Sanmartini Van Lines, Ltd. began operations at the beginning of the current year and engaged in the

Question:

Sanmartini Van Lines, Ltd. began operations at the beginning of the current year and engaged in the following transactions affecting the stockholders’ equity section of its current The company has 1,000,000 shares authorized for each common and preferred stock.
1. Issued 500,000 shares of its $ 2 at $ 64 per share. The underwriter charged a 1% fee for issuing the shares.
2. Issued 100,000 shares of $ 4.50 7% preferred stock at $ 120 per share. These shares were privately placed and Sanmartini did not pay any stock issue costs.
3. Purchased 120,000 shares of at $ 70 per share.
4. Declared a $ 75,000 for the first half of the year. (The declarations should be recorded separately for the common and the preferred shares.)
5. Sold 45,000 of the treasury shares at $ 60 per share.
6. Paid the cash dividends.
7. Declared a $ 75,000 cash for the second half of the year. (The declarations should be recorded separately for the common and the preferred shares.)
8. Reported net income of $ 9,879,455 for the current year.
9. Closed out all dividends accounts.
Required
a. Prepare all journal entries required to record the transactions listed above.
b. Construct the shareholders’ equity section for the year- end as well as the relevant t- accounts. Common Stock
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