The company is granted a charter that authorizes issuance of 15,000 shares of $100 par value preferred stock and 40,000 shares of $1 par value common stock. 6,000 shares of common stock are issued to the founders of the corporation for land valued by the board of directors at $400,000. The Company declares a cash dividend of $2 per share on the common stock. 4,000 shares of preferred stock are sold for cash at $110 per share. Prepare the general journal entries necessary to record these transactions