On Jan 1, 2020, Adam Font and friends organized a corporation called Font, Inc. The corporation was authorized to issue 50,000 shares of $100 par value, 10% cumulative preferred stock and 400,000 shares of $1 par value common stock. The following transactions related to shares occurred during the year: Jan. 2 Issued for cash 20,000 shares of common stock at $25 per share. Jan. 5 Issued 2,500 shares of preferred stock in exchange of a piece of land with the market value of $300,000. Apr. 12 The corporation purchased 6,000 shares of its own common stock at a price of $40 per share. Jun. 11 Reissued 2,000 shares of the treasury stock at a price of $38 per share. Jul. 15 Declared a 2% stock dividend to common stockholders of record at July. 31, to be distributed on August 15. The market price of the common stocks on July 15 was $45 per share. (The remaining 4,000 shares of treasury stock do not participate in the stock dividend.) Jul. 30 Distributed the stock dividend declared on July 15. Aug. 4 Reissued 3,000 shares of the treasury stock at a price of $42 per share. Required: a. Prepare the journal entries to record the transactions. You may omit description for the journal entries. (21 marks) b. Assume Font, Inc, declared its first ever cash dividend of $100,000 at the year end of 2021. How much should be distributed to common shareholders and preferred shareholders, respectively? Please show your workings. (4 marks)