Instructions: Journalize the following transactions for Rich Company.

1. Issued 7,000 shares of no-par common stock. The market price of the stock is $12 per share.

2. Issued 3,000 shares of 5%, $100 par, cumulative preferred stock for $122 per share.

3. Declared dividends on preferred dividend of 5% per share.

4. Purchased 500 shares of common stock at $14 for treasury.

5. Paid preferred dividend declared in #3.