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Lodi Company is authorized to issue 100,000 shares of noepar, $6 statedivalue common stock and 10,000 shares of 9% $100 par preferred stock. It enters into the following transactions on December 31: 1. Accepts a subscription contract to 7,000 shares of common stock at $41 per share and receives a 30% down payment. 2. Collects the remaining balanoe of the subscription contract and issues the common stock. 3, Acquires a building by paying $2,000 cash and issuing 3,000 shares ofcommon stock and 900 shares of preterred storm, Common stock is currently selling at $45 per share; preferred stock has no current market value, The building is appraised at $1,310,000, 4, Sells 1:000 shares of common stock at $48 per share, 5. Sells 900 shares of preferred shock at $110 per share. 6. Declares a three-forone stock split on the common stock. reducing the stated value to $2.00 per share. Required: Prepare the journal entries to record the preceding transactions. Chart of Accounts X ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 172 Building 511 Insurance Expense 181 Equipment 512 Utilities Expense 189 Accumulated Depreciation 521 Salaries Expense 532 Bad Debt Expense LIABILITIES 540 Interest Expense 211 Accounts Payable 541 Depreciation Expense 231 Salaries Payable 559 Miscellaneous Expenses 250 Unearned Revenue 910 Income Tax Expense 261 Income Taxes Payable EQUITY 305 Preferred Stock 311 Common Stock 312 Common Stock Subscribed 318 Additional Paid-in Capital on Preferred Stock 320 Additional Paid-in Capital on Common Stock 326 Subscriptions Receivable 331 Retained EarningsGeneral Journal X Prepare journal entries to record the transactions on December 31. General Journal Instructions PAGE 1 PAGE 2 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 3 7 8General Journal X Prepare journal entries to record the transactions on December 31. General Journal Instructions PAGE 1 PAGE 2 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 2 UnT co 10 11