On January 1st. 2020, the extract below was taken from the Shareholders Equity Section of the X Company's Balance Sheet:- Preferred Shares, 8%, $100 par value , 10,000 shares authorized, 4,000 shares issued...................................................................$400,000 Common shares, $2 par value, 200,000 shares authorized, 80,000 shares issued................................................................. 160,000During 2020 the following transactions took place:- Equipment was purchased in exchange for 100 common shares. The shares fair market value on the date of exchange was $12 per share.Sold 1,000 common shares and 100 preferred shares for the lump sum price of $24,500. The common shares had a market value of $14 per share at the time of sale.Sold 2,000 preferred shares for cash at $102 per share.Required:-Prepare the journal entries for the above transactions.(12 marks).

QUESTION #2(12 MARKS]: On January 1 St. 2020, the extract below was taken from the Shareholders Equity Section of the X Company's Balance Sheet:- Preferred Shares, 8%, $100 par value, 10,000 shares authorized, 4,000 shares issued.....musicaustin $400,000 Common shares, $2 par value, 200,000 shares authorized, 80,000 shares issued. 160,000 During 2020 the following transactions took place:- i. Equipment was purchased in exchange for 100 common shares. The shares fair market value on the date of exchange was $12 per share. i. Sold 1,000 common shares and 100 preferred shares for the lump sum price of $24,500. The common shares had a market value of $14 per share at the time of sale. lil. Sold 2,000 preferred shares for cash at $102 per share. Required:-Prepare the journal entries for the above transactions. (12 marks)