After looking into debt financing through notes, mortgage, and bonds payable, Nature Gnome Company decides to raise additional capital for a planned business expansion. The company will be able to acquire cash as well as land adjacent to its current business location. Before the following transactions, the balance in Common Stock on January 1, 2021 was $750,000 and included 150,000 shares of common stock issued and outstanding. (There was no Paid-In Capital in Excess of ParCommon.) Nature Gnome Company had the following transactions in 2021:

i More Info 1 Jan. Issued 120,000 shares of $5 par value common stock for a total of $720,000. 10 Issued 100,000 shares of 2%, $7 par value preferred stock in exchange for land with a market value of $2,000,000. Dec. 15 Declared total cash dividends of $35,000. Declared a 6% common stock dividend when the market value of the stock was $8.00 per share. 31 Paid the cash dividends. 31 Distributed the stock dividend. 20 Print Done INICITEIT NE Requirement 1. Journalize the transactions. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Jan. 1: Issued 120,000 shares of $5 par value common stock for a total of $720,000. Date Accounts and Explanation Debit Credit Jan. 1 Cash 720,000 Common Stock-$5 Par Value 600,000 Paid-In Capital in Excess of ParCommon 120,000 Issued common stock at a premium. Jan 10: Issued 100,000 shares of 2%, $7 par value preferred stock in exchange for land with a market value of $2,000,000 Date Accounts and Explanation Debit Credit Jan. 10 Land 2,000,000 Preferred Stock-$7 Par Value 700,000 Paid-In Capital in Excess of ParPreferred 1,300,000 Issued preferred stock in exchange for land. Debit Credit Dec. 15: Declared total cash dividends of $35,000. Date Accounts and Explanation Dec. 15 Cash Dividends Dividends PayablePreferred Dividends PayableCommon 35,000 14,000 21,000 Declared a cash dividend. Dec. 20: Declared a 6% common stock dividend when the market value of the stock was $8.00 per share. Date Accounts and Explanation Debit Credit Dec. 20 Stock Dividends Paid-In Capital in Excess of ParCommon Common Stock Dividend Distributable Declared a 6% stock dividend