1. Brook Inc. is authorized to issue 100,000, $5, cumulative, preferred shares, and an unlimited number of common shares. Prepare journal entries to record the following transactions that occurred during the first 3 months of operations: 10

May-05	Sold 2,000 preferred shares for $14 per share.
Jun-16	Exchanged 4,000 preferred shares for equipment with a fair market value of $55,000.
Jul-23	Sold 8,000 common shares and $21 per share.