2) Knoxville Corp. was incorporated into being on January 1st with an authorization of 100,000 $2 par common shares and 50,000 $8 par, 5% preferred shares. During the year Knoxville had the following transactions: ISS Issued 10,000 common shares at $12 per share on January 1st. Issued 5,000 preferred shares at $20 per share on January 2nd. Issued 30,000 common shares at $15 per share on March 1st Purchased 5,000 of its own common shares at $17 per share on June 1st. Sold 3,000 treasury shares for $18 per share on August 31st. Sold 1,000 treasury shares for $15 per share on October 31st. Paid the preferred share dividends in cash on December 31st a) Prepare all journal entries necessary for Knoxville to account for these transactions. If Knoxville's Net Income for the year was $17,000, calculate their basic Earnings Per Share ratio