Covington Corporation, a publicly traded company, was organized on January 1, 2018. It is authorized to issue an unlimited number of $3 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations: Jan. 10 Issued 1,040,000 common shares for $2 per share. Mar. 1 Issued 22,000 preferred shares for $50 per share. May 1 Issued 260,000 common shares for $3 per share. June 1 Reacquired and retired 9,000 common shares at $2 per share. Determine the average cost of each reacquired share to the nearest cent before recording this transaction. July 24 Issued 34,400 common shares for $132,000 cash and used equipment. The equipment originally cost $33,000. It now has a carrying amount of $16,500 and a current value of $17,400. The common shares were trading for $4 per share on this date. Sept. 4 Issued 11,000 common shares for $5 per share. Nov. 1 Issued 3,700 preferred shares for $50 per share. 20 Reacquired and retired 16,000 common shares at $4 per share. Determine the average cost of each reacquired share to the nearest cent before recording this transaction. Dec. 14 Declared a $69,000 cash dividend to the preferred shareholders, to shareholders of record on December 31, payable on January 10. 31 Reported net income of $1,320,000 for the year. Date Account Titles and Explanation Debit Credit Nov. 20 Closing entries: Debit Credit Date Account Titles and Explanation Dec. 31 (To close cash dividends) Dec. 31 (To close profit)