Practice problem 3 On 15 January 2013, Edmond Corporation is authorized to issue 80,000 shares of $100 par value, 3% non-cumulative preferred stock and 500,000 shares of $85 par value common stock On 1" April 2013, Edmond issued 120,000 shares of common stock for $95 per share and 40,000 preferred shares for $130 per share. On 19 June 2013, Edmond repurchased 80,000 common stocks at $98 per share. Later on 19 September, the company resold 15,000 of treasury stocks at S102 per share. On 31* December 2013, the company has net income of $420,000 and thus declared cash dividends of $200,000 to its shareholders. Required: Prepare journal entries to record the transactions above and show how the equity section is reported in the Balance Sheet as of December 31, 2013