In 2018, Elizabeth and some of her friends invested money to start a company named FRIENDZ Corporation. The following transactions occurred during 2018.

Jan 1 The corporate charter authorized 70,000 shares of 5%, $100 par value cumulative preferred stock and unlimited shares of $10 par value common stock.

Jan 6 Issued 200,000 common shares at $16 per share to Elizabeth and other investors

Jan 7 Issued another 500 common shares to Elizabeth in exchange for her services in organizing the corporation.

Jan 12 The stockholders agreed that the services were worth $8,000.

Jan 14 Issued 10,000 common shares in exchange for equipment. The fair market value of the equipment could not be readily determined, but the market price of the common stock on this date was $16 per share.

Nov 15 The first annual cash dividend on preferred stock was declared

Dec 20 Paid the dividends declared on preferred stock

Dec 31 Estimated income tax expense of $38,000. However, the actual amount of income tax due for this period based on tax laws is determined to be $34,000.

FRIENDZ Corporation generated a $125,000 net income (after income tax) during the year. The company uses the retained earnings account to record dividends.

a) Prepare the journal entries to record the above transactions in 2018.

Date	Account Title and Explanation	Debit	Credit