P10-87B. (Learning Objectives 2, 3, 4: Account for stock issuance, dividends, and treasuryLO 2, 3,4 stock) Madrid Jewelry Company reported the following summarized balance sheet at December 31, 2018: Assets Current assets Property and equipment, net S 33,400 106,600 $140,000 Total assets Liabilities and Equity S 37,000 Liabilities Stockholders' equity: S0.80 cumulative preferred stock, $10 par, 4,000 58,500 Paid-in capital in excess of par-common....18,500 22,000 $140,000 400 shares issued Common stock, $9 par, 6,500 shares issu Retained earnings Total liabilities and equity During 2019, Madrid Jewelry completed these transactions that affected stockholders' equity: Feb Issued 5,300 shares of common stock for $12 per share. Declared the regular cash dividend on the preferred stock. Paid the cash dividend. Declared and distributed a 20% stock dividend on the common stock. Market price of the common stock was $17 per share. Reacquired 700 shares of common stock as treasury stock, paying $20 per share Sold 300 shares of the treasury stock for $24 per share Declared a cash dividend of $0.25 per share on the outstanding common stock; dividends will be paid in January, 2020. 13 Jun 7 24 Aug 9 Oct 26 Nov 20 Dec 31 Requirements 1. Journalize Madrid Jewelry's transactions. Explanations are not required. 2. Prepare the company's stockholders' equity section of the balance sheet at December 31 2019. Net income for 2019 was $30,000