Granderson Company was granted a charter that authorized the following capital stock:
Common stock: 100,000 shares, par value per share is $40
Preferred stock: 8 percent; par $5; 20,000 shares
During the first year, 2011, the following selected transactions occurred in the order given:
a. Sold 30,000 shares of the common stock at $40 cash per share and 5,000 shares of the preferred stock at $26 cash per share.
b. Issued 2,000 shares of preferred stock when the stock was selling at $32.
c. Repurchased 3,000 shares of the common stock sold earlier; paid cash, $38 per share.
Required:
Give journal entries for each of these transactions.