3. Potts Co. has 50,000 shares of common stock (par $5) issued and outstanding on 1/1/16, 6,000 of preferred stock (par $16), and 2,000 shares of treasury stock (original price per share $6). Retained Earnings on 1/1/16 $800,000. During 2016 the following transaction took place at Potts Co took place. Record all necessary JEs for the transaction determine the number of common and preferred shares outstanding as of 12/31/16. 1/31/2016: Declared a $2 cash dividend on common stock 2/15/2016: Issued 1,500 shares of preferred stock at a price of $14 per share. 2/28/2016: Date of record for dividend declared on 1/31/2016. 3/15/2016: Date of payment for dividend declared on 1/31/2016. 5/2/2016: 700 shares of common stock are purchased as treasury stock by the corporation at price of $8 per share 7/15/2016: Issued 500 shares of common stock at sales price of $7/share. 7/30/2016: A A% stock dividend is declared on preferred stock. On the date of declaration, the market price of preferred stock was $20/ share 8/1/2016: Date of record for the preferred dividend declared on 7/30/16. 9/15/2016: Date of distribution on the preferred dividends declared on 7/30/2016. 10/1/2016: Sold half of the treasury shares purchased on 5/2/2016 at a sales price of $9/share