Transactions to incorporate and run a business. The following events relate to shareholders' equity transactions of Hutchins Company. Present journal entries for these transactions.

a. July 5, Year 1. The company files articles of incorporation with the secretary of state. The authorized capital stock consists of 5,000 shares of 4 percent preferred stock with a par value of \(\$ 100\) per share and 50,000 shares of no-par common stock.

b. July 8, Year 1. The company issues 6,000 shares of common stock for cash at \(\$ 40\) per share.

c. July 9 , Year 1 . The company issues 4,000 shares of common stock for the assets of the partnership of Hutchins and Hutchins. The company values the assets received as follows: accounts receivable, \(\$ 20,000\); inventories, \(\$ 30,000\); land, \(\$ 40,000\); buildings, \(\$ 50,000\); and equipment, \(\$ 20,000\).

d. July 13, Year 1. The company issues 800 shares of preferred stock at par for cash.

e. December 31, Year 1. The balance in the Income Summary account, after closing all expense and revenue accounts, is a \(\$ 75,000\) credit. Close the account to the Retained Earnings account.

f. January 4, Year 2. The directors declare the regular semiannual dividend on the preferred stock and a dividend of \(\$ 3\) per share on the common stock. The dividends are payable on February 1.

g. February 1, Year 2. The company pays the dividends declared on January 4.

h. July 2, Year 2. The directors declare the regular semiannual dividend on the preferred stock. The dividend is payable on August 1.

i. August 1, Year 2. The company pays the dividend declared on July 2 .