Diego Corp received its charter and began business in 2020. The company was authorized to issue 20,000, $5, noncumulative preferred shares and an unlimited number of common shares.

Prepare journal entries to record the following transactions that occurred during 2020:

Sep-01 Honoured a $55,000, 12%, 120 note payable, in exchange for 800 preferred shares.

Oct-12 Sold 1,500 preferred shares for $70 per share, cash.

Nov-03 Sold 2,000 common shares at $22 per share.