ISSUING AND REPURCHASING STOCK Redbird, Inc., had the following transactions related to its common and preferred stock:

January 15 Sold 50,000 shares of $0.50 par common stock for $12 per share. Sold 2,000 shares of $10 par preferred stock at $14 per share.

October 1 Repurchased 4,000 shares of the common stock at $20 per share.

Required:

Prepare the journal entries for the above transactions.

Exercise