Michal inc. is authorized to issue 50000, $8 no par value, cumulative, fully participating preferred shares, and 75000 par value common shares. prepare journal entries to record the following transactions that occurred during the first year of operations:

jan 10 sold 76000 common shares for $8.5 per share, cash

jan 15 exchange 10000 preferred share for quipment with a fair market value of 89000.

feb 1 exchange 600 common shares for 3000 worth of legal fees incurred during organization.