The Stockholders Equity accounts of Rita Corporation on January 1, 2019 were:

STOCKHOLDERS EQUITY

Preferred stock, 7%, $100 par cumulative, 5000 shares authorized $300,000

Common Stock, $5 par value, 400,000 shares authorized 1,000,000

Additional Paid-in Capital:

Preferred 15,000

Common 400,000

Retained 488,000

Treasury stock-common (5,000 shares @ $8 costs) 40,000

During 2016, the corporation had the following transactions and events pertaining to stockholders equity:

FEB. 1 Issued 5,000 shares of common stock for $35,000

June 14 Sold 4000 shares out of the treasury stock for $34,000

December 31, determine that net income for the year was $215,000. Dividend of $80,000 were declared and paid by the board.

1. How many shares of preferred stock are issued?

2. What total amount will be preferred stockholders receive as their dividend?

3. Prepare the journal entry to record the June 14 sales of out of the Treasury stock.