Knapp Industries began business on January $1,2021$ by issuing all of its $1,000,000$ authorized shares of its $$1$ par value common stc for $$40$ per share. On June $30,$ Knapp declared a cash dividend of $$2$ per share to stockholders of record on July $31.$ Knapp paid th cash dividend on August $30.$ On November $1,$ Knapp reacquired $200,000$ of its own shares of stock for $$50$ per share. On Decembe $22.$ Knapp resold $100,000$ of these shares for $$60$ 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 $$6,000,000.$

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

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 $1,000,000$ authorized shares of $$1$ par value for $$40$ per share.

Note: Enter debits before credits.