1) Prepare a journal entry for each of the following transactions. a) Masters Corporation sells 10,000 common shares for $13.25 per share. b) Masters Corporation sells 5,000 shares of $5, cumulative preferred shares for $55 per share. c) Received a building with a market value of $160,000, and issued 6,400 common shares in exchange. d) Masters Corporation reports a net income for the current year of $56,000. Prepare the entry to close the income summary account. Date Accounts Debit Credit 2) Following is the shareholders' equity section of the balance sheet of Downing Corporation as of November 1, 2023: Preferred shares, $3, noncumulative, 10,000 shares authorized, 6,500 shares issued $325,000 Common shares, 300,000 shares authorized, 120,000 shares issued 1,620,000 Total contributed capital 1,945,000 Retained earnings 467,200 Total shareholders' equity $2,412,200 Downing Corporation reported the following transactions during November, 2023: Nov. 1 Declared the required annual cash dividend on the preferred shares and a $0.50 dividend on the common shares. 15 Paid the dividends declared on November 1. 16 Declared a 10% common stock dividend. The market value of the common shares is $15.00 per share. 26 Distributed the common stock dividend declared on November 16. 30 The board of directors announced a 2-for-1 stock split. Show the dollar amount of the effect of each transaction on both total contributed capital and total shareholders' equity. Date Total Contributed Capital Total Shareholders' Equity Nov. 1 15 16 26 30 3) Arrow Corporation began 2023 with the following account balances: Common shares, 100,000 shares authorized, 75,000 issued $2,175,000 Retained earnings 750,000 In January 2019, Arrow Corporation reported the following transactions: Jan. 10 Reacquired 5,000 of its own shares for $30 per share. 20 Sold 3,000 of the reacquired shares for $33 per share. 30 Sold the remaining reacquired shares for $22 per share. Record journal entries for the above transactions. 4) Rice Corporation reported the following shareholders' equity items on December 31, 2023: Preferred shares, $5, cumulative, 7,000 shares authorized, 1,000 shares issued $153,200 Common shares, 10,000 shares authorized, 5,000 shares issued 550,000 Retained earnings 455,300 Consider each of the following cases independently: 1) How many common shares would be outstanding if Rice Corporation declares a 4-for-1 stock split? 2) Prepare the journal entry if Rice Corporation declared a 15% stock dividend on the common shares when the market price of common shares was $130 per share. 3) Prepare the journal entry if Rice Corporation declared a 45% stock dividend on the common shares when the market price of common shares was $130 per share. 4) Give the journal entry to record the sale of 800 common shares for $125 per share