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Early in the year Bill Sharnes and several friends organized a corporation called Sharnes Communications, Inc. The corporation was authorized to issue 50,000 shares of

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Early in the year Bill Sharnes and several friends organized a corporation called Sharnes Communications, Inc. The corporation was authorized to issue 50,000 shares of $100 par value, 10 percent cumulative preferred stock and 400,000 shares of 52 par value common stock. The following transactions among others) occurred during the year Jan. 6 Issued for cash 20,000 shares of common stock at $14 per share. The shares vere issued to Sharnes and 10 other investors. Jan. 7 Issued an additional 500 shares of common stock to Shares in exchange for his services in or puniting the corporation. The stockholders agreed that these services were worth $7,000 Jan. 12 Issued 2.500 shares of preferred stock for cash of $250,000 Jane Acquired land as a building site in exchange for 15,000 shares of common stock. In vier of the appraised value of the land and the progress of the company, the director's speed that the common stock ves to be valued for purposes of this transaction at $15 per Nov. 15 The first annual dividend of $10 per share va declared on the preferred stock to be paid December 20. Dec. 31 After the revenue and expenses vere closed into the Income Sunnery account that account indicated set income of $147,200 Required: a. Prepare journal entries in general journal form to record the above transactions. Include entries at December 31 to close the Income Summary account and the Dividends account. b. Prepare the stockholders' equity section of the Sharnes Communications, Inc., balance sheet at December 31 Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries in general journal form to record the above transactions. Include entries at December 31 to close the Income Summary account and the Dividends account. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet

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