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Question 2 On December 31, 2021, Sheridan Company had 1,310,000 shares of $7 par common stock issued and outstanding. At December 31, 2021, stockholders' equity had the amounts listed here. Common Stock Additional Paid-in Capital Retained Earnings $9,170,000 1,860,000 1,120,000 Transactions during 2022 and other information related to stockholders' equity accounts were as follows. 1. 2. 3. 4. On January 10, issued at $109 per share 114,000 shares of $100 par value, 9% cumulative preferred stock. On February 8, reacquired 16,900 shares of its common stock for $11 per share. On May 9, declared the yearly cash dividend on preferred stock, payable June 10, to stockholders of record on May 31. On June 8, declared a cash dividend of $1.20 per share on the common stock outstanding, payable on July 10, to stockholders of record on July 1. Net income for 2022 was $3,687,000. 5. Your answer is correct. Record the journal entries that are required for items 1-5 above. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Jan. 10 Cash 12426000 Preferred Stock 11400000 Paid-in Capital in Excess of Par Value-Preferred St 1026000 Feb. 8 Treasury Stock 185900 Cash 185900 May 9 Cash Dividends 1026000 Dividends Payable 1026000 Jun. 8 Cash Dividends 1551720 Dividends Payable 1551720 Jun. 10 Dividends Payable 1026000 Cash 1026000 Jul. 10 Dividends Payable 1551720 Cash 1551720 Dec. 31 Income Summary 3687000 Retained Earnings 3687000 (To close net income) Dec. 31 Retained Earnings 2577720 Cash Dividends 2577720 December 31, 2022 Stockholders' Equity > Paid-in Capital Capital Stock Common Stock 1293100 Preferred Stock 11400000 Total Capital Stock 12693100 Additional Paid-in Capital Paid-in Capital in Excess of Par Value-Preferred St 1860000 Paid-in Capital in Excess of Par Value-Common St|| 1026000 Total Additional Paid-in Capital 28860001 Total Paid-in Capital 15579100 Retained Earnings 2229280 x Total Paid-in Capital and Retained Earnings 5115280

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