Galiano Company carried out the following transactions related to its common and preferred shares. The following transactions were carried out during Year $1$:

$$ January $1$Issued $8,000$ common shares for $$20$ each.

$$ January $1$Issued $2,000$ cumulative preferred shares for $$30$ each. The preferred shares pay a yearly dividend of $$1\mathrm{.}00$ per share.

$$ February $7$Issued $2,000$ common shares for a small parcel of land. The land has an appraised value of $$42,000.$

$$ November $30$Declared a total dividend of $$4,000$ to be paid December $31.$ Note $$ some of the $$4,000$ is paid to preferred shareholders based on the info in the second bullet and the remainder is paid to common shareholders.

$$ December $31$Paid the dividend declared on November $30.$

No dividends were declared during Year $2.$ However, the following transactions were carried out during Year $2$:

$$ January $1$Issued $3,000$ cumulative preferred shares for $$80$ each. They pay a yearly dividend of $$1\mathrm{.}50$ per year. Note $=$ these shareholders are entitled to a dividend in Year $2.$

$$ March $30$Issued $20,000$ common shares for $$22$ each.

The following transactions were carried out during Year $3$:

$$ November $30$Declared a dividend of $$15,000$ to be paid December $31.$

$$ December $31$Paid the dividend declared on November $30.$

The following transactions were carried out during Year $4$:

$$ September $30$Declared a $10\%$ common stock dividend to be distributed on October $31.$ On that date, the common shares were trading for $$20.$

$$ October $31$Distributed the common stock dividend.

Required

Prepare all the required journal entries for the above transactions. Dividends are cash unless otherwise noted.

Answer rating: 100% (QA)

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