2 Complete the Statement of Changes in Owners Equity for Menlo Oaks, Inc. Prepare all of the necessary journal entries to record the events a and b described below During the year, the following transactions occurred in the order given. Witt Corporation received its charter during January of this year. The charter authorized the following stock: Preferred stock: $10 par value, 21,000 shares authorized : $, Common stock: $1 par value, 50,000 shares authorized a. Sold a total of 40,000 shares of the common stock at $10 cash per share b. Sold 5,000 shares of the preferred stock at $16 cash per share. b. $. c. Net income for the year was 595,000. d. Dividends of $20,000 were distributed to the stock owners. Journal entry a Journal entryb Menlo Oaks Inc. Statement of Changes in Owner's Equity For the Year Ended December 31, 2018 (in Dollars) Stockholders' Equity: Contributed Capital: Common stock Preferred stock Additional paid-in capital, common stock Additional paid-in capital, preferred stock Total contributed capital Retained earnings Net Income Dividends Total Retained Earnings Total stockholders' equity Transactior General Journal Debit Credit a Cash 400.000 Common Stock Par 40.000 Common Addl Paid Capital 360.000 b Cash 80.000 Preferred Stock Par 50.000 Preferred Addi Paid Capital 30.000