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The Oriole Corporation was incorporated on January 2, 2023, with fwo classes of share capital: an unlimited number of common shares and $4 cumulative non

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The Oriole Corporation was incorporated on January 2, 2023, with fwo classes of share capital: an unlimited number of common shares and $4 cumulative non voting preferred shares with an authorized limit of 100.000. During the first year of operations, the following transactions cocurred: 1. The company issued 11,000 preferred shares for a total of $154,000 cash and 22,000 common shares for $24 per share: 2. It issued 5,800 common shares in exchange for a parcel of land with an estimated fair market value of $154,000. The compary recorded saies of $1.250.000 and operating expense of $1,017,000 during the year, No dividends were declared during the first year of operation. During the second year of operation (2024), the following transaction occurred: 3. In December, the company's board of directors declared cash dividends sufficient to pay a dividend of $6 on each common share. The dividends were payable on danuary 15, 2025. (Hint: remember that no dividends can be paid on the common shares until the dividends in arrears and the current dividends on the preferred shares are paid.) Throughout the second year of operation, the company recorded sales of $1,507,000 and operating expense of $1,319,000. (a) Prepare journal entries to record transactions 1,2, and 3, including closing entries for dividends declared in transaction 3, (Credit Prepare jourmal entries to record transactions 1,2, and 3, including closing entries for dividends declared in trarsaction 3, (Crecit account titles ore automotioally indented when the amount is entered. Do not indent manually. If no entry is required, select 'No Entry' for the account tilies and enter of for the amounts, List all debit entries before credit entries.) Year 2 3.: (To rocord dividends declared on prefered ahares) (Fo record divdends dedared on common shares.) (To dose dividends declared.) Jatuary 15:2025

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