Issuance and Retirement of Shares, Cash Dividends On January 2, 20X1, Chippewa Investment Company began business by issuing 10,000 shares at $1 par value for $100,000 cash. The cash was invested, and on December 26, 20X1 all investments were sold for $114,000 cash. Operating expenses for 20X1 were $4,000, all paid in cash. Therefore, net income for 20X1 was $10,000. On December 27, the board of directors declared a $.20 per share cash dividend, payable on January 15, 20X2 to owners of record on December 31, 20X1. On January 30, 20X2, the company bought and retired 1,000 of its own shares on the open market for $8.00 each. 1. Prepare journal entries for issuance of shares, declaration and payment of cash dividends, and retirement of shares. 2. Prepare a balance sheet as of December 31, 20X1.