Early in the year, Roger Gordon and several friends organized a corporation called Mobile Communications, Inc.. The corporation was authorized to issue 50,000 sharesof $100 par value, 10%cumulative preferred stock and 400,000 sharesof $2par value common stock. The following transactions occurs during the year:

Jan. 6: Issued for cash 20,000 sharesof common stock at $14per share. the share were issued to gordon and 10 other investor

jan 7: issued an additional of 500 shares of common stock to gordon in exchange for his service in obtaining corporation. the stockholder agrreed that these services were worth $7000.

Jan. 12: Issued 2,500 sharesof preferred stock for cash of $250,000

Jun. 4: Acquired land in exchange for 15,000 sharesof common stock. In view of the appraised value of the land, the common stock was to be valued for purposes of this transaction at $15per share.

Nov. 15: The first annual dividend of $10per share was declared on the preferred stock to be paid December 31.

Dec 20: Paid cash dividend declared on November 15.

Dec. 31: After the revenue and expenses were closed into income summary account that account indicated the income of 106500

Instruction:

Prepare Journal Entries to record the above transactions. Include entries at december 31 to close income summary account and dividend account. Also prepare the stockholder equity section of the mobile communication , Inc balance sheet at dec 31