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Item 1: On January 1, 2024, Entity L had 60,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred: Mar. 1 Issued 70,000 shares of common stock at $5 per share. June 1 Declared a cash dividend of $1.25 per share to stockholders of record on June 15 June 30 Paid the $1.25 cash dividend Dec. 1 Purchased 2,500 shares of common stock for the treasury for $13 per share Instructions: Prepare journal entries to record the above transactions. Show your calculations. Item 2: The December 31, 2024 balance sheet of Entity M showed the following: Treasury stock (9,000 shares common) \$ 99,000 Paid-in capital in excess of stated value - common stock 1,600,000 9% preferred stock, $100 par value, cumulative, 30,000 shares authorized; 12,000 shares issued, ? outstanding $1,200,000 Common stock, $10 stated value, 500,000 shares authorized; 300,000 shares issued, ? shares outstanding 3,000,000 Paid-in capital in excess of par value - preferred stock 195,000 Retained earnings 535,000 Instructions: What is total stockholders' equity? Prepare the stockholders' equity section of the balance sheet. You should look at Illus. 11.18 to get a sense of what yours should look like. Use good form, indicating the number of authorized, issued, and outstanding shares for each class of stock. Item 3: Short answer. A. List two differences between common and preferred stock. B. What is the difference between cumulative preferred stock and non-cumulative preferred stock? C. How are dividends in arrears presented in the financial statements

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