Monsoon Company carried out the following transactions related to its common and preferred shares.

Year 1

• January 1: Issued 8,000 common shares for $20 each.

• January 1: Issued 2,000 cumulative preferred shares for $30 each. The preferred shares pay a yearly dividend of $1.00 per share.

• February 7: Issued 2,000 common shares for a small parcel of land. The land has an appraised value of $42,000.

• November 30: Declared a dividend of $4,000 to be paid December 31.

• December 31: Paid the dividend declared on November 30.

Year 2:

• January 1: Issued 3,000 cumulative preferred shares for $80 each. They pay a yearly dividend of $1.50 per year.

• March 30: Issued 20,000 common shares for $22 each

• No dividends were declared during Year 2.

Year 3

• November 30: Declared a dividend of $15,000 to be paid December 31.

• December 31: Paid the dividend declared on November 30.

Year 4

• September 30: Declared a 10% common stock dividend to be distributed on October 31. On that date, the common shares were trading for $20.

• October 31: Distributed the common stock dividend.

• November 10: Reacquired 1,000 common shares for $19 each.

Instructions:

Prepare all the required journal entries for the above transactions.