Mahl Co. is publicly held. Its shares are traded over-the-counter, and it issues single-period statements only. Its fiscal year end is December 31, Year 6. Use the facts in the exhibits to prepare the journal entries. Ignore transactions that do not affect an equity account in Year 6 when first recognized. To prepare each required journal entry: Click on a cell in the Account Name column and select from the option list the appropriate account. An account may be used once, more than once, or not at all. Enter the corresponding debit or credit amount in the associated column. Round all amounts to the nearest whole number.

1. Prepare the journal entries for the issuance of common shares for land, if any.

2. Prepare the journal entries for the purchase of Mahl's common stock, if any.

3. Prepare the journal entries for the declaration of property dividend, if any.

3a. Prepare the journal entries for the recognition of the payable on the declaration of property dividend, if any.

3b. Prepare the journal entries for the recognition of the distribution on the declaration of property dividend, if any.

4. Prepare the journal entries for the reissue of treasury stock, if any.

5. Prepare the journal entries for the declaration and payment of a cash dividend on common stock, if any.

6. Prepare the journal entries for the declaration of a cash dividend on preferred stock, if any.

MAHL COMPANY Tumbleweed, Texas From: Alex Johnson; ajohnson@mahlcompany.com To: AcctDirectors; acctdirectors@mahlcompany.com Date: October 15, Year 6 Subject: Treasury Stock Training To all Accounting Directors, You are all an integral part of this company, and I believe the short training sessions our managers hold in their respective team meetings each week is both a great asset to the employee's development and to the future growth of our company I usually leave the subject matter of the training sessions up to you; however, this year we have had activity with treasury stock, and I think it would make an excellent learning opportunity for the staff. I have provided the information below for the transactions that took place this year. Please meet with your managers and discuss, so they in turn can teach their teams. See me if you have questions! Success to us all! Alex Johnson Alex Johnson, CFO Mahl Company Treasury Stock Purchase March 1, Year 6 - 5,000 shares of common stock were purchased to be held as treasury stock for $14 per share. The cost method is used to account for treasury stock. Note: Transactions in treasury stock are legal in our state of incorporation. Reissue of Treasury Stock October 1, Year 6 -2,000 shares of treasury stock were reissued for $16 per share. Equity Accounts Mahl Co. December 31, Year 5 $ 200,000 Preferred stock, $100 par value, 6% noncumulative; 5,000 shares authorized; 2,000 issued and outstanding Common stock, $1 par value, 150,000 shares authorized; 100,000 issued and outstanding Additional paid-in capital Retained earnings Accumulated other comprehensive income Total equity 100,000 800,000 1,586,000 312,000 $2,998,000 Letter to Shareholders MAHL COMPANY Tumbleweed, Texas August 1, Year 6 Dear Shareholders: As you are aware, earlier this year, Mahl Company declared and distributed a property dividend to our common shareholders in the form of available-for-sale debt securities. These had a carrying amount on Mahl Company's financial statements of $600,000 (no valuation allowance is maintained). Many of you have requested information on the fair value of these securities on the various relevant dates: date of declaration, date of record, and date of distribution. For ease of communication, this letter is being distributed to all common shareholders of record as of May 31, Year 6. Fair values of the securities on the relevant dates: Date of declaration (May 10, Year 6) $720,000 Date of record (May 25, Year 6) $758,000 Date of distribution (June 1, Year 6) $736,000 Sincerely, Wallace Shepard Wallace Shepard President and CEO Special Meeting - Board of Directors Minutes MAHL COMPANY Tumbleweed, Texas A special meeting of the Board of Directors of Mahl Company was held on February 1, Year 6, at 8:00 a.m. at the company offices in Tumbleweed, Texas. Those present were: Carson Mitchel, Chairman of the Board; Wallace Shepard, President and CEO; Jeremy Cox; Suzanne Richardson; and Tabitha Gillespie. Proceedings: Mr. Carson Mitchel, Chairman of the Board, presided, and Mr. Jeremy Cox acted as secretary of the meeting. On motion and unanimously approved, the following resolution was adopted: BE IT RESOLVED, on February 1, Year 6, Mahl Company will issue 13,000 shares of common stock to Ram Company in exchange for land. As of today, February 1, Year 6, the stock has a quoted market price of $11 per share. The land consists of 40 acres of undeveloped land located off of County Road 123 and Dustville Blvd., on the east side of Tumbleweed, Texas. Parcel numbers are 86-001-5467-9284 and 86-001-5467-9285. The assessed value of the land for property tax purposes is $90,000 and is carried on Ram Company's books at $135,000 Adjournment: There being no further business to come before the meeting, it was on motion adjourned at 2:30 p.m. Respectfully submitted: Jeremy Cox, Acting Secretary Press Release PRESS RELEASE MAHL COMPANY DECLARES DIVIDEND Tumbleweed, Texas, November 4, Year 6 - Mahl Company, manufacturer of specialty construction equipment, today announced that its Board of Directors declared a cash dividend of $1.50 per share of the company's common stock. The dividend will be paid on November 25, Year 6, to all common shareholders of record as of the close of business on November 15, Year 6. About Mahl Company Founded in Year 1, Mahl Company is a manufacturer of specialty construction equipment at its location in Tumbleweed, Texas. The company primarily manufactures special order construction equipment for large government contracts. Earlier this year, the company acquired 40 acres of undeveloped land with the intent of expanding and improving its manufacturing process. With these improvements, the company will be able to manufacture special orders on a much smaller scale, increasing its footprint in the private sector. RESOLUTION OF THE BOARD OF DIRECTORS OF MAHL COMPANY Tumbleweed, Texas DECLARATION OF PREFERRED STOCK DIVIDENDS BE IT RESOLVED THAT: 1. The company declares on this day, December 20, Year 6, the required annual cash dividend for preferred stock for Year 6. 2. The dividend is to be set aside and distributed on January 5, Year 7. 3. The directors of Mahl Company hereby certify that the preferred shareholders of record with the company will be provided with a copy of this notice. The undersigned, being the Chairman of the Board for Mahl Company, hereby approves the foregoing resolution in accordance with the provisions of the company's bylaws. DATED the 20th day of December, Year 6. Carson Mitchel Carson Mitchel, Chairman of the Board