*E18-23 (Entries for Stock Rights) Pearl Bailey Company purchases 240 shares of common stock of Car- men Jones Inc. on February 17. The $100 par stock, costing $27,300, is to be a long-term investment for Bailey Company. 1. On June 30, Jones Inc. announces that rights are to be issued. One right will be received for every two shares owned 2. The rights mentioned in (1) are received on July 15; 120 shares of $100 par stock may be purchased with these rights at par. The stock is currently selling for $120 per share. Market value of the stock rights is $20 per right. 3. On August 5, 70 rights are exercised, and 70 shares of stock are purchased at par. 4. On August 12, the remaining stock rights are sold at $23 per right. 5. On September 28, Bailey Company sells 50 shares of those purchased February 17, at $124 a share. Instructions Prepare necessary journal entries for the five numbered items above