During the first year of operations, the following transactions occurred: 1. The company issued 9,000 preferred shares for a total of $126,000 cash and 18,000 common shares for $24 per share. 2. It issued 6,100 common shares in exchange for a parcel of land with an estimated fair market value of $126,000. The company recorded sales of $1,245,000 and operating expense of $995,000 during the year. No dividends were declared during the first year of operation. During the second year of operation (2024), the following transaction occurred: 3. In December, the company's board of directors declared cash dividends sufficient to pay a dividend of $5 on each common share. The dividends were payable on January 15, 2025. (Hint: remember that no dividends can be paid on the common shares until the dividends in arrears and the current dividends on the preferred shares are paid.) Throughout the second year of operation, the company recorded sales of $1,506,000 and operating expense of $1,318,000. (a) Prepare journal entries to record transactions 1,2, and 3, including closing entries for dividends declared in transaction 3. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the ac'count titles and enter o for the amounts. List all debit entries before credit entries.)