The stockholders' equity of Wharton Company at December 31, 2018, follows $1,350,000 Common Shares, 350,000 shares authorized; 150,000 shares issued and outstanding Retained Earnings Total Shareholders' Equity $346,000 $1,696,000 During 2019, the following transactions occurred. Jan. 5: Jan. 18: Issued 10,000 shares of common stock for $12 cash per share. Repurchased (and cancelled) 4,000 shares of common stock at $14 cash per share. Issued 5,000 shares, of 8% (fixed dividend rate), $25 par value preferred stock for $35 cash per share. This is the first issuance of preferred shares from 50,000 authorized shares. Oct. 1: Required: 1. Prepare the journal entries for these transactions. 2. Prepare the December 31, 2019, stockholders' equity section of the balance sheet assuming that the company reports net income of $72,500 for the year