Part I JR-III Incorporated's records provide the following information on January 1, 2019. Preferred stock, 2%, $100 par (50,000 shares authorized) $1,800,000 Additional paid-in capital on preferred stock 320,000 Common stock, $10 par (1,500,000 shares authorized) 5,400,000 Additional paid-in capital on common stock 1,200,000 Retained earnings 6,682,000 During 2016, the following transactions were recorded by JR- III: a. Issued 50,000 shares of common stock at $15, receiving cash. b. Issued 6,000 share of preferred stock at $126. c. Purchased 20,000 shares of treasury common $360,000. d. Sold 9,000 shares of treasury common for $171,000. e. Declared cash dividends of $3 per share on preferred stock and $.46 per share on common stock. Required: 1. Prepare journal entries to record the stock transactions of JR- III assuming it uses the cost method of accounting for treasury stock. 2. Prepare the shareholders' equity section of the JR-III balance sheet at December 31, 2019, assuming 2019 net income was $2,324,200