Mar 30 ABC Corporation is authorized by its article to issue 200000 preferred shares which pay $2.50 per share. The company is authorized 150,000 common shares but it has issued only 75000 common shares at the beginning of the year. The table below shows the transactions that occurred during the year 2019 Year 2018 Date Transactions Jan 5 issued 18000 common shares at $8 per share Mar 2 Paid the promoters $ 25,500 in kind by issuing 5000 common shares Paid suppliers (A/C payable) $4250 in kind (1000 common shares) April 30 Issued 20000 common shares in exchange for a equipment valued at $72000 and land valued at $100,000 May 15 Purchased building for 120,000 in cash May 31 Depreciated the equipment for $15,000 Sold 10000 common shares for $95,000 August 31 Sold 5000 preferred shares for cash $35 per share. Sept 10 Board of directors declared cash dividend of $0.90 to common shareholders and also declared dividend for preferred shares October 2 Purchased supplies for $7600 in cash Dec 31 Paid the dividend both to common shareholder and preferred shareholders December 31 Closed the account with $62,000 debit balance in the income summary to the Retained earnings Remember that preferred and common dividends are paid on issued shares only not shares that are authorized June 30 REQUIRED (A) Journalize the transactions (B) Make a statement of earnings. The company had a balance of $32000 in the retained earnings in the beginning of year 2019