A small group of investors decided to organize a corporation called The Brookville Company in early 2020 The investors were authorized by the State of Minnesota to issue 500,000 shares of $100 par value, 5 cumulative, non participating preferred stock and 2,000,000 shares of $1 par value common stock The following transactions occurred during 2020 On February 2 The Brookville Company (The Company) issued 5,000 shares of its common stock to the Steve Martin CPA firm as compensation for 500 hours of accounting services performed Martin's usual rate is $300 per hour (FMV of The Companys stock was unknown on 2 2) On March 25 The Company issued 500,000 of its common stock in the open market for $20 per share On April 15 The Company issued 200,000 shares of its preferred stock at par On May 12 The Company reacquired 40,000 of its common stock shares at $26 per share as treasury stock On August 20 The Company reissued 12,000 shares of its treasury stock at $30 per share On September 4 The Company reissued 10,000 shares of its treasury stock at $12 per share On September 15 The Company declared a property dividend of 4,000 shares of General Mills common stock, with a date of record October 1, that Brookville had purchased on February 14, 2020 for $40,000 as a Trading Securities investment General Mills shares had a market value of $18 per share on the declaration date and was paid on October 8 The Company only makes year end adjusting journal entries The Company declared and distributed a 9 stock dividend on October 29 on its common stock shares The market price of Brookvilles common stock was $40 per share on October 29 The Company declared the maximum cash dividend on its Preferred Stock on December 15 and will be paid December 24 The Company declared a cash dividend of $4 per share on its Common Stock shares also on December 15 to be paid December 24 Required a) Prepare all of the necessary journal entries to record the above transactions b) Prepare the stockholders equity section of The Brookville Company balance sheet as of December 31, 2020 (Net Income for the year ended 12 31 20 totaled $4,750,000)

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A small group of investors decided to organize a corporation called The Brookville Company in early 2020. The investors were authorized by the State of

A small group of investors decided to organize a corporation called The Brookville Company in early 2020. The investors were authorized by the State of Minnesota to issue 500,000 shares of $100 par value, 5% cumulative, non-participating preferred stock and 2,000,000 shares of $1 par value common stock. The following transactions occurred during 2020:

On February 2 The Brookville Company (The Company) issued 5,000 shares of its common stock to the Steve Martin CPA firm as compensation for 500 hours of accounting services performed. Martin's usual rate is $300 per hour. (FMV of The Companys stock was unknown on 2/2)
On March 25 The Company issued 500,000 of its common stock in the open market for $20 per share.
On April 15 The Company issued 200,000 shares of its preferred stock at par.
On May 12 The Company reacquired 40,000 of its common stock shares at $26 per share as

treasury stock.
On August 20 The Company reissued 12,000 shares of its treasury stock at $30 per share.
On September 4 The Company reissued 10,000 shares of its treasury stock at $12 per share
On September 15 The Company declared a property dividend of 4,000 shares of General Mills common stock, with a date of record October 1, that Brookville had purchased on February 14, 2020 for $40,000 as a Trading Securities investment. General Mills shares had a market value of $18 per share on the declaration date and was paid on October 8. The Company only makes year-end adjusting journal entries.
The Company declared and distributed a 9% stock dividend on October 29 on its common stock shares. The market price of Brookvilles common stock was $40 per share on October 29.
The Company declared the maximum cash dividend on its Preferred Stock on December 15 and will be paid December 24.
The Company declared a cash dividend of $4 per share on its Common Stock shares also on December 15 to be paid December 24.

Required:
1. a) Prepare all of the necessary journal entries to record the above transactions.
2. b) Prepare the stockholders equity section of The Brookville Company balance sheet as of
  
  December 31, 2020 (Net Income for the year ended 12/31/20 totaled $4,750,000)