PROBLEM 3 The charter for Donnelly inc. authorizes the company to issue 300,000 shares of $2, no- par preferred stock and 950,000 shares of common stock with $1 par value. During its start-up phase, Donnelly Inc. completed the following transactions. May 10 Issued 300 shares of stock receiving cash of $7,500 May 14 Issued 600 shares of preferred stock for cash of $35,000 May 20 Issued 1,100 shares of common stock in exchange for land with a market value of $25,000. Requirements 1. Record the transactions in the journal. 2. Prepare the stockholders' equity of Donnelly's balance sheet at December 31, 2020. Assume the company earned net income of $42,000 during this period