Item $1$: On January $1,2024,$ Entity L had $35,000$ shares of $$1$ par value common stock

issued and outstanding. During the year, the following transactions occurred:

Mar. $1$ Issued $18,000$ shares of common stock at $$13$ per share.

June $1$ Declared a cash dividend of $$1\mathrm{.}50$ per share to stockholders of record on

June $15[$Hint: All outstanding common shares participate in the dividend$]$

June $30$ Paid the $$1\mathrm{.}50$ cash dividend

Dec. $1$ Purchased $1,300$ shares of common stock for the treasury for $$21$ per share

Instructions: Prepare journal entries to record the above transactions. Show your

calculations.

Item $2$: The December $31,2024$ balance sheet of Entity M showed the following:

Treasury stock $(3,000$ shares common$).................................................$$ $43,000$

Paid$-$in capital in excess of stated value $$ common stock $.....................1,700,000$

$9\%$ preferred stock, $$100$ par value, cumulative,

$30,000$ shares authorized; $11,000$ shares issued,

$\_\_\_\_?$ outstanding............................................................................$ $1,100,000$

Common stock, $$10$ stated value, $600,000$ shares authorized;

$200,000$ shares issued, $\_\_\_\_?$ shares outstanding.......................... $2,000,000$

Paid$-$in capital in excess of par value $$ preferred stock $.........................410,000$

Retained earnings $............................................................................1,960,000$

Instructions: What is total stockholders$$ equity? Prepare the stockholders$$ equity

section of the balance sheet. You should look at Illus. $11\mathrm{.}18$ to get a sense of what

yours should look like. Use good form, indicating the number of authorized, issued,

and outstanding shares for each class of stock.