Long Answer Problem - Share Transactions In March 2020, FDW Co. received its approved articles of incorporation granting the right to issue an unlimited amount of common shares and 70,000 shares of $5 cumulative preferred shares. 2020 Mar. 1 Issued 40,000 common shares at $21 per share and 20,000 preferred shares at $95 per share. Mar. 27 Gave the corporation's lawyers 2,500 preferred shares for their services in getting the corporation organized. The lawyers valued their services at $240,000. Aug. 31 Issued 20,000 shares of common stock for machinery with a fair value of $460,000 and a book value of $420,000. Dec. 31 Closed the income summary account. Profit was $560,000 for the year. 2021 Feb. 27 Repurchased 20,000 common shares by paying $20.50 per share. Dec. 1 The board of directors declared a $250,000 dividend, payable on December 27th to the December 15th shareholders of record. The corporation maintains preferred and common dividend payable in separate accounts. Dec. 15 Shareholder's date of record. Dec. 27 Paid the previously declared dividend Dec. 31 Closed the income summary account. Profit was $700,000 for the year. All other applicable closing entries were made.