Question: 3 Kathleen Battle Corporation was organized on January 1, 2021. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of $1 par value common stock. The following stock transactions were completed during the first year. January 10 Issued 80,000 shares of common stock for cash at $5 per share. March 1 issued 5,000 shares of preferred stock for cash at $108 per share. April 1 Issued 24,000 shares of common stock for land. The cost price of the land was $80,000 the fair value of the land was $90,000. May 1 Purchased 10000 shares of common stock at $2.5 per share. (Use cost method) August 1 Sold 9000 treasury shares at $3 per share. December 31 Declared a $0.25 per share cash dividend on common stock and declared the preferred dividend a) Prepare necessary journal entries for the above. [1+1+1+1+1+1] b) Prepare stockholders' equity section for Kathleen Battle Corp at December 31, 2021 assuming the net income for the year $ 2,00,000. [2]