Question 1: (5 marks: 1 mark for each transaction). Beta Company had the following transactions. 1. Paid $2,000 fees to incorporate. 2. Issued 10,000 shares of common stock with a stated value of $ 5 for $ 550,000. 3. Issued 3,000 shares of $100 par value preferred stock at $107 for cash. 4. Issued 15,000 shares, $10 par value, and common stock in exchange for a building. Beta common stock has been actively traded on the stock exchange at $27 per share. 5. Purchased 2,000 shares for the treasury for 20 $ as purchase price. Instructions: Prepare the journal entries to record the above stock transactions. (1 mark for each transaction). Question 2: (5 marks: each case 2.5 marks). Sigma Corporation purchased 2,000 shares of its $5 par value common stock for a cash price of $12 per share. Two months later, Sigma sold the treasury stock for a cash price of $10 per share. Instructions: Prepare the journal entry to record the sale of the treasury stock assuming (a) No balance in Paid-in Capital from Treasury Stock. (2.5 marks) (b) A $3,000 balance in Paid-in Capital from Treasury Stock. (2.5 marks)