Tyler Corporation was organized in 2014. Its corporate charter authorized the issuance of 50,000 shares of common stock, par value $5 per share, and 10,000 shares of 8% preferred stock, per value $25 per share.

Prepare journal entries for each of the following transactions:

January 1 Sold and issued 45,000 shares of common stock for cash at $ 25 per share

February 1 Sold and issued 5,000 shares of preferred stock for cash of $75 per share.

June 1 Purchased 7,500 shares of common stock in the open market at $24 per share.

August 1 Sold 1,000 shares of the treasury stock at $26 per share.

October 1 Sold another 1,500 shares of the treasury stock at $23 per share.

December 1 Declared dividends totaling $100,000.

Allocations of the dividend to preferred and common stockholders.

December 31 Paid the dividends that were declared.