P10-2 (Algo) Preparing the Shareholders' Equity Section after Selected Transactions LO10-3, 10-7, 10-8 10 points 03:44:24 _("eBook ") Print Pring sqrt0 References References Revenues $405,000 Expenses, including income taxes 202,500 Required: Prepare the journal entries to record each of these transactions and to close the accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Preferred shares: 8 percent, $26 par value, authorized 55,000 shares Common shares: no par value, authorized 185,500 shares During year 1 , the following transactions occurred in the order given: a. Sold and issued 27,500 common shares to each of the three organizers. Col

1 Record sale and issue of 82,500 common shares at $11 per share. 2 Record sale and issue of 7,500 preferred shares at $26 per share. 3 Record sale and issue of 3,500 preferred shares at $26 per share and 3,500 common shares at $14 per share. 4 EX: Credit Record closing entry to transfer revenues and expenses to income summary. 5 Record closing entry to transfer the profit to Retained earnings. = journal entry has been entered Note: Record entry Clear entry View general journal