MGMT FFAC Ch 11: Exercises Item 1: On January 1, 2021, Entity L had 75,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred: Mar. 1 Issued 90,000 shares of common stock for $675,000 June 1 Declared a cash dividend of $2.00 per share to stockholders of record on June 15 June 30 Paid the $2.00 cash dividend Dec. 1 Purchased 5,000 shares of common stock for the treasury for $18 per share Instructions: Prepare journal entries to record the above transactions. Item 2: The following stockholders' equity accounts, arranged alphabetically, are in the ledger of Entity M Corporation at December 31, 2022. Common Stock ($5 stated value, 2,000,000 shares authorized, 560,000 shares issued and ? shares outstanding )....... Paid-in Capital in Excess of Par ValuePreferred Stock..... Paid-in Capital in Excess of Stated Value-Common Stock. Preferred Stock (8%, $100 par, noncumulative, 20,000 shares authorized, 10,000 shares issued and outstanding). Retained Earnings (credit balance) Treasury Stock (10,000 common shares at cost) $2,800,000 45,000 1,050,000 1,000,000 1,005,000 98,000 Instructions: Prepare the stockholders' equity section of the balance sheet in good form at December 31, 2022. Be sure to indicate how many shares are authorized, issued, and outstanding for each class of stock