Question 5 - Recording Transactions Affecting Stockholders' Equity (Total 17 marks) Dresden Company began operations in January of the current year and was granted a charter that authorized the following stock: Common stock: $1 par value, 500,000 shares authorized Preferred stock: 15 percent, $6.5 par value, 50,000 shares authorized During the current year, the following transactions occurred in the order given: a. Issued 125,000 shares of common stock for $3.0 per share. b. Issued 28,000 shares of the preferred stock for $8 per share. C. Sold 8,000 shares of the preferred stock for $8 per share and 32,000 shares of common stock for $2 per share. d. Net income for the current year was $360,000. e. Declared dividends $0.2 on total authorized common stock. Required: 1. Provide the journal entries required to record each of the transactions in (a) to (c). (11 marks) 2. Prepare the stockholders' equity section of the balance sheet at the end of the year. (6 marks)