Kirkland Corporation entered into the following transactions during 2018:

1. Beginning of JanuarySold 10,000 shares of its $1Par value common stock for $18 per share.
2. Beginning of JanuarySold 2,000 shares of its 8% cumulative preferred stock, par value of $40, at a price of $45 per share.
3. Repurchased 500 shares of its common stock (for treasury stock) at a total cost of $9,500.
4. Sold and re-issued 260 shares of the treasury stock previously re-purchased in transaction c at a price of $19 per share. (Hint: what was the repurchase price per share in transaction c?)
5. On May 1, 2018, borrowed $100,000 from the local bank for one year. Interest rate on the loan is 8%.
6. Earned cash revenues of $690,000 for the year.
7. Paid expenses of $350,000 for the year.
8. Based on historical experience, recorded a warranty liability of 1.5% of sales.
9. Purchased equipment for use in the business for $75,000, plus freight costs of $5,000 and installation costs of $2,500. The equipment has a useful life of 10 years and an estimated salvage value of $7,500.

December 31:

1. Record the annual depreciation on the equipment purchased in transaction i. Assume that the equipment was placed in service on January 2, 2018 and that company uses the straight line method.
2. Declared and paid the annual cash dividend on the preferred stock previously issued in transaction b.
3. Declared a $0.15 per share cash dividend on the shares of common stock outstanding at the end of the year (assume all common stock transactions listed previously have already occurred). Hint: dividends are only paid on outstanding shares, which you will need to determine as of the dividend declaration date.
4. Record the amount of accrued interest as of December 31, 2018 on the $100,000 loan in transaction e.

Requirements:

Record each of the transactions listed above on the separate financial statement template. You may assume that each of the transactions occur in the sequence listed above.