Empresas ABC presents the following information as of December 31, 2023:

Preferred Stock, 2%, $100 par value 30,000 shares issued and outstanding $3,000,000 Common shares, no par value, 2,000,000 shares issued and 10,000,000 outstanding Paid-in capital in excess of par valuepreferred shares 300,000

Retained earnings 4,500,000

The following transactions occurred during 2024:

1. January 1 5,000 preferred shares were issued at $122 each. 2. February 1 50,000 common shares issued at $50 each. Issue costs were $15,000. 3. March 5 Retired 3,000 preferred shares that had been issued at $110 per share. The company paid $390,000 for them. 4. July 1 30,000 common shares were repurchased and not canceled at $10 each. 5. September 15 10,000 treasury shares are reissued at $12 each. 6. September 30 5,000 treasury shares are reissued at $8 each. 7. December 31 Net income for the year = $300,000. Other comprehensive income for the year = $15,000.

REQUIRED:

A. Use T-accounts to record the effect on them of the events listed above. identify with the # assigned the transaction you are recording. Prepare the Shareholders' Equity section as of DECEMBER 31, 2024.

B. Record transactions in the journal. You must show your process to get the full score.