Michael Inc. is authorized to issue 50,000, $9, cumulative preferred shares, and 750,000 common shares. Required: Prepare journal entries to record the following transactions that occurred during the first year of operations: Jan. 10........ Sold 86,000 (at $7 per share) common shares for cash. Feb. 1........... Exchanged 700 preferred shares for $3,500 worth of costs/expenses incurred during organization. Oct. 15........... 9,000 common shares were issued in exchange for equipment with a fair market value of $100,000. The shares were actively trading on this date at $9 per share