Zhang Ltd., a public company, was incorporated on January 1, 2021. The company

completed the following transactions during its first year.

Jan. 5 Issued 50,000 common shares for $2.50 per share.

Jan. 20 Issued 3,000 common shares to pay legal expenses. The value of the legal expenses was $10,000. The common shares were trading at $5 per share on the stock market at the time.

Feb. 10 Issued 10,000 preferred shares for $30.00 per share.

Aug. 12 Reacquired 15,000 common shares for $2.40 per share.

Oct. 1 Issued 5,000 common shares for $2.25 per share.

Dec. 15 Reacquired 20,000 common shares for $2.65 per share.

Instructions:

Prepare the necessary journal entries to record the above transactions.