The following transactions occurred for Rothman Corp. during 2020, its first quarter of operations (fiscal year ending Dec. 31):

1. On Oct. 5, Rothman issued 2000 shares of $10 par common stock in an IPO and 400 shares of $40 par preferred stock for a lump sum of $85,000 cash. The values of the common and preferred stock were appraised separately at $30 and $50 per share, respectively.

2. On Oct. 20, Rothman declared an 80% common stock dividend, when the market value per share of the common stock was $32.

3. On Dec. 5, the common stock dividend was issued.

4. On Dec. 20, a 3-for-1 stock split occurred for common stock. 5. On Dec. 30, Rothman purchased 100 shares of its own common stock for $14 per share.

Instructions: A. Prepare the general journal entries to record each of the above transactions. B. Determine the number of common shares (1) issued and (2) outstanding at Dec. 31, 2020.