Problem 2 (30 points) Hat Trick Hockey has two classes of stock authorized: 7%, $20 par value, cumulative preferred and $1 par value common. In 2020, the company experienced cash flow issues and only paid dividends of $45,000. The following transactions affected stockholders' equity during 2021, its second year of operations: February 2 Issues 1 million shares of common stock for $20 per share. February 4 Issues 50,000 shares of preferred stock for $21 per share. June 15 Purchases 100,000 shares of its own common stock for $18 per share. August 15 Resells 75,000 shares of treasury stock for $23 per share. November 1 Declares a cash dividend on its common stock of $1 per share and a cash dividend on its preferred stock (7% of par value), payable to all stockholders on record on November 15. November 30 Pays the dividends declared on November 1. Required: 1. Record each of these transactions. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net income for the year was $3,200,000, and the beginning balance of retained earnings was $2,400,000