they completed the equity transactions listed below in Exhibit 1. The account balances in Exhibit 2 are Pre- Closing amounts for Year-End December 31, 2021 balances and, DO NOT INCLUDE any of the transactions 1 through 6 listed in Exhibit 1. You will A1. Prepare the Journal Entries for the items listed below in Exhibit 1. Be sure to date your entries. You do Exhibit 1: 1. On February 1, the company issued 2,000 shares of their $10 PAR value Common Stock for $19 per share. 2. On May 1, the company issued 1,000 shares of 3% Cumulative Preferred Stock for $115 per share. The PAR value of this Preferred Stock is $100 per share. 3. On October 1, the company issued an additional 500 shares of their $10 PAR value Common Stock for $21 per share. 4. On December 1, the company decided to purchase 200 shares of its Common Stock from shareholders to be held in treasury for Employee Bonuses. The company uses the Cost Method to account for Treasury Stock. They paid $22 per share for the stock. 5. On December 20, the company declared a Preferred Dividend that totaled $3,000. 6. The company paid the dividends on December 29, 2021. 7. The company has asked you to create the journal entry to close the income statement accounts (presented in Exhibit 2) on Exhibit 2: Shoes for You, Inc. Pre-Closing (and Before Equity JEs) Account Balances YE 2021 Debit Credit Cash 316,754 Accounts Receivable 193,191 Allowance for Doubtful Accounts 1,932 Merchandise Inventory 53,440 Prepaid Insurance 250 Building 240,000 Accumulated Depreciation--Building 17,500 Display Equipment 1,200 Accumulated Depreciation--Display Equipment 350 Accounts Payable 7,265 Salaries and Wages Payable 5,290 Bank Loan Payable 150,000 Mortgage Note Payable 166,400 Common Stock (10,000 shares issued at PAR value) 100,000 Retained Earnings 262,355 Sales Revenue 643,970 Cost of Goods Sold 373,503 Salaries & Wages Expense 127,000 Supplies Expense 2,390 Insurance Expense 1,990 Bad Debt Expense 1,650 Depreciation Expense Interest Expense Income Tax Expense 6,120 12,656 24,919 1,355,062 1,355,062