Item 1: On January 1, 2021, Entity L had 75,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred:

Mar. 1 Issued 90,000 shares of common stock for $675,000

June 1 Declared a cash dividend of $2.00 per share to stockholders of record on June 15

June 30 Paid the $2.00 cash dividend

Dec. 1 Purchased 5,000 shares of common stock for the treasury for $18 per share

Instructions: Prepare journal entries to record the above transactions.

Item 2: The following stockholders' equity accounts, arranged alphabetically, are in the ledger of Entity M Corporation at December 31, 2022.

Common Stock ($5 stated value, 2,000,000 shares authorized,

560,000 shares issued and shares outstanding ).......................... $2,800,000

Paid-in Capital in Excess of Par ValuePreferred Stock................ 45,000

Paid-in Capital in Excess of Stated ValueCommon Stock............ 1,050,000

Preferred Stock (8%, $100 par, noncumulative, 20,000 shares

authorized, 10,000 shares issued and outstanding)......................... 1,000,000

Retained Earnings ............................................................................ 1,005,000

Treasury Stock (10,000 common shares at cost) ............................ 98,000

Instructions: Prepare the stockholders equity section of the balance sheet in good form at December 31, 2022. Be sure to indicate how many shares are authorized, issued, and outstanding for each class of stock.