Patti$$s Pumps $($PP$)$ is a new business founded on January $1,2021.$ The Articles of Incorporation authorize

the issuance of a maximum of:

$100,000$ shares of $$0\mathrm{.}01$ par value Class A Common Stock,

$500,000$ shares of $$0\mathrm{.}01$ par value, non$-$voting Class B Common Stock, and

$20,000$ shares of $8\%$ cumulative, participating, $$100$ par value Preferred Stock.

Both shares of Class A Common Stock and Class B Common Stock must receive the same dividends

declared. In addition, the owner of each share of preferred stock must receive the same dollar value of

dividends paid to the owner of each share of common stock.

Record the journal entries for the following transactions.

a$.$ On February $1,2021,$ PP issued $20,000$ shares of Class A stock to investors for $$12$ cash per

share. PP also issued $150,000$ shares of Class B stock for $$11$ cash per share.

b$.$ In a separate transaction, also on February $1,2021,$ PP issued $10,000$ shares of Class A stock and

$3,000$ shares of preferred stock a major investor. This investor paid a total of $$447,000$ cash for

all the $13,000$ shares of stock.

c$.$ On February $2,2021,$ PP issued $100,000$ shares of Class B stock in exchange for land and a

building. The fair market value of the land and building were $$400,000,$ and $$850,000,$

respectively. The Class B stock was trading at $$11\mathrm{.}50$ per share.

d$.$ Create the Balance Sheet for Patti$$s Pumps as of February $28,2021,$ assuming no other

transactions occurred.

e$.$ On March $31,2021,$ PP declared and issued a $10\%$ stock dividend to all Class A shareholders.

The fair market value of the Class A stock on this day was $$14.$

f$.$ On April $30,2021,$ PP declared and issued a $40\%$ stock dividend to all Class B shareholders. The

fair market value of the Class B stock on this day was $$12.$

g$.$ On May $31,2021,$ PP paid $$80,000$ to repurchase $5,000$ shares of Class A Common Stock as

treasury stock.

h$.$ On June $5,2021,$ PP sold $3,000$ shares of the treasury stock of Class A Common Stock for $$17$

cash per share.

i$.$ On June $15,2021,$ PP sold $1,000$ shares of the treasury stock of Class A Common Stock for $$11$

cash per share.

j$.$ On December $15,2022,$ PP declared a dividend of $$800,000.$ This is the first dividend that the

Board of Directors of Patti$$s Pumps has ever declared. Calculate how much each class of stock

receives $($Class A Common Stock, Class B Common Stock, and Preferred Stock, separately$)$ and

record the necessary journal entry.

k$.$ On December $31,2022,$ PP paid the dividends declared on Dec $15,2022.$