Problem 1: Chapter 15 - Equity Transactions (29 points)

Made-Off, Corp's board of directors has authorized the issuance of 200,000 shares of $0.05 par common stock and 10,000 shares of $100 par, 10%, cumulative, participating preferred stock as of January 1, 2020. The following transactions occurred during the year.

1.1: [14 pts] Record the journal entries for all the above transactions through July 31, 2020.

1.1.1: [2] February 28, 2020: The company issued 50,000 shares of common stock for $400,000.

1.1.2: [2] March 31, 2020: Made-Off issued 8,000 shares of preferred stock to a vendor in exchange for specialized equipment. This is the first trade for the preferred stock, so no market value is available, but the equipment has a fair value of $875,000.

1.1.3: [4] April 30, 2020: Made-Off issues 50,000 shares of common stock and 1,000 shares of preferred stock in exchange for $450,000. The common and preferred shares were trading for $7.50 and $111 per share, respectively.

1.1.4: [2] May 30, 2020: Made-Off repurchased 7,000 shares of common stock for $50,000.

1.1.5: [2] June 30, 2020: Made-Off sold 2,000 shares of Treasury Stock for $8 per share.

1.1.6: [2] July 31, 2020: Made-Off sold 2,000 shares of Treasury Stock for $13,000.

1.2: [5 pts] Report the Stockholders' Equity Section of Made-Off as of December 31, 2020.

1.3: [3] January 31, 2021: Made-Off declared and issued a 35% stock dividend to common shareholders when the stock price was $10.50 per share.

1.4: [7] December 31, 2023: Made-Off declared a cash dividend of $450,000. The dividend will be paid on January 20, 2024 to shareholders of record on January 15, 2024. Record the journal entry for the December 31, 2023 dividend declaration, ex-dividend date, and dividend payment, if any. (Assume only full years for calculating preferred dividends. Be sure to distinguish between amounts due or paid to preferred and common shareholders).