Part 1 During the current year of operations, Lynbrook Inc. completed the following transactions relating to shareholders' equity. January 6: Issued 200,000 of its common shares for $6 per share and 4,000 preferred shares at $105. February 24: Issued 50,000 shares of common stock in exchange for a building with a known cash price of $400,000. May 20: August 20: Reacquired 50,000 shares of its common stock at $15. Sold 20,000 of its treasury shares at $17. September 27: Sold 25,000 of its treasury shares at $6. The articles of incorporation authorize 5,000,000 shares with a par value of $1 per share of common and 100,000 preferred shares with a par value of $100 per share. Required: Prepare the journal entries to record the above transactions. Part 2 The shareholders' equity of Scan House, Inc. includes the items shown below. The board of directors of Scan House declared cash dividends of $2 million, $10 million, and $75 million in each of its first three years of operation: 2019, 2020, and 2021, respectively. Common stock, $1 par, 50,000,000 shares outstanding Preferred stock, 7%, $100 par, 1,000,000 shares outstanding Required: Determine the amount of total dividends paid to preferred and common stockholders for each of the three years. The preferred stock is cumulative.