Stock Journal Entry Exercise Bulldog Enterprises had its Initial Public Offering (IPO) two years ago and is now considering issuing additional shares of stock to finance a planned expansion. They will be issuing additional common stock shares, as well as a brand new issuance of preferred stock. As their accountant, you are required to answer the below questions and complete the journal entries to account for the below transactions. Question 1: The company currently has 120,000 authorized shares, 75,000 issued, and 20,000 outstanding, with a par value of $1 per share. Each of the shares was issued at a price of $27. What would the equity section of the balance sheet look like at this time? You need to fill out the two lines related to the common stock shares that have already been issued. Balance Sheet Equity Section (include labels, number of shares, and dollar Common Stock, $1 Par. Additional Paid in Capital Retained Earnings Total Equity Question 2: $92,000 Record the journal entry if the company issues 35,000 additional shares of common stock at a price of $30 (and a par value of $1). Hint: You may not need all lines. DR: Cash DR: CR: CR: Common Stock Additional Paid in Capital Question 3: Record the journal entry if the company issues 10,000 shares of 15% preferred stock (par value $120) at a price of $135. Hint: You may not need all lines. DR: Cash DR: CR: CR: Preferred Stock Additional Paid in Capital Question 4: Assume one year has passed since the above shares were issued. No dividends were paid in that first year. During year 2, the Board of Directors has decided to issue dividends in the amount of $125,000. Determine the amount of dividends that should be paid to common stockholders and preferred stockholders (in total and per share.) Assume that a standard dividend is being paid to the preferred shareholders. Preferred Stockholders Common Stockholders Total Per Share