The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Companys charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the companys journal entries and statement of owners equity based on the following information which is grouped according to your first name initial. Issued 50% shares of class A common stock. Stock has par value of $45.00 per share and was issued at $75.00 per share.

Issued 50% shares of class A common stock. Stock has par value of $45.00 per share and was issued at $75.00 per share.

Issued 50% shares of no-par class B stock.

Issued 25% shares of preferred stock at par value.

Exchanged 40% shares of class A common stock for Office Furniture and Equipment with an appraised value of $4,000,000.00 and Motor Truck with an appraised value of $10,000,000.00.

Earned Net income $1,400,000.00.

Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders.

Using the info above and as a guide:

1. Prepare the journal entries with narrations to record the following:

• The issuances of stock.
• Close out net income to retained earnings.
• Dividend declared.
• Close out dividend to retained earnings.