Common Stock Issuance, Treasury Stock, Dividends, Disclosure. Sanmartini Van Lines, Ltd. began opera- tions at the beginning of the current year and engaged in the following transactions affecting the stockholders equity section of its current balance sheet. The company has 1,000,000 shares authorized for each common and preferred stock. 1. Issued 500,000 shares of its $2 par value common stock at $64 per share. The underwriter charged a 1% fee for issuing the shares. 2. Issued 100,000 shares of $4.50 par value, 7% preferred stock at $120 per share. These shares were pri- vately placed and Sanmartini did not pay any stock issue costs. 3. Purchased 120,000 shares of common stock at $70 per share. 4. Declared a $75,000 dividend for the first half of the year. (The declarations should be recorded separately for the common and the preferred shares.) 5. Sold 45,000 of the treasury shares at $60 per share. 6. Paid the cash dividends. 7. Declared a $75,000 cash dividend for the second half of the year. The declarations should be recorded separately for the common and the preferred shares.) 8. Reported net income of $9,879,455 for the current year. 9. Closed out all dividends accounts