Question $1(30$ marks$)$

Galiano Company carried out the following transactions related to its common and

preferred shares. The following transactions were carried out during Year $1$:

January $1-$Issued $8,000$ common shares for $$20$ each.

January $1-$Issued $2,000$ cumulative preferred shares for $$30$ each. The

preferred shares pay a yearly dividend of $$1\mathrm{.}00$ per share.

February $7-$Issued $2,000$ common shares for a small parcel of land. The land

has an appraised value of $$42,000.$

November $30-$Declared a total dividend of $$4,000$ to be paid December $31.$

Note $-$ some of the $$4,000$ is paid to preferred shareholders based on the info

in the second bullet and the remainder is paid to common shareholders.

December $31-$Paid the dividend declared on November $30.$

No dividends were declared during Year $2.$ However, the following transactions

were carried out during Year $2$:

January $1-$Issued $3,000$ cumulative preferred shares for $$80$ each. They pay a

yearly dividend of $$1\mathrm{.}50$ per year. Note $=$ these shareholders are entitled to a

dividend in Year $2.$

March $30-$Issued $20,000$ common shares for $$22$ each.

The following transactions were carried out during Year $3$:

November $30-$Declared a dividend of $$15,000$ to be paid December $31.$

December $31-$Paid the dividend declared on November $30.$

The following transactions were carried out during Year $4$:

September $30-$Declared a $10\%$ common stock dividend to be distributed on

October $31.$ On that date, the common shares were trading for $$20.$

October $31-$Distributed the common stock dividend.

Required

Prepare all the required journal entries for the above transactions. Dividends are

cash unless otherwise noted.