Knapp Industries began business on January $1,2021$ by issuing all of its $1,800,000$ authorized shares of its $$2$ par value common stock for $$35$ per share. On June $30,$ Knapp declared a cash dividend of $$2\mathrm{.}50$ per share to stockholders of record on July $31.$ Knapp paid the cash dividend on August $30.$ On November $1,$ Knapp reacquired $360,000$ of its own shares of stock for $$40$ per share. On December $22,$ Knapp resold $180,000$ of these shares for $$46$ per share.

Required:

a$.$ Prepare all of the necessary journal entries to record the events described above.

b$.$ Prepare the stockholders' equity section of the balance sheet as of December $31,2021$ assuming that the net income for the year was $$10,500,000.$

Complete this question by entering your answers in the table below.

Required $A$

Prepare all of the necessary journal entries to record the events described above. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

A

B

C

D

E

Record the issue of $1,800,000$ authorized shares of $$2$ par value for $$35$ per share.