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The equity section of German Corp.s statement of financial position at December 31, 2018, was...

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Accounting

The equity section of German Corp.s statement of financial position at December 31, 2018, was as follows:

Shareholders equity

Share capital:

Preferred shares (Series C): $0.60, noncumulative, 40,000 shares authorized, 12,000 shares issued and outstanding

Common shares: 1,000,000 shares authorized, 75,000 shares issued and outstanding

94,000

270,000

Total share capital

Retained earnings Total shareholders equity

364,000

127,400 $491,400

The following transactions occurred in 2019:

January 15:Issued 25,000 common shares for $3.50 per share and 3,600 Series C preferred shares for $7 per share.

June 7:Issued 4,000 Series C preferred shares in exchange for equipment valued at $29,500.

Sep 26:Issued 18,000 common shares for $3.75 per share.

Oct 19:Declared $32,000 of dividends, payable to shareholders on January 9, 2020

Prepare the journal entries to record these transactions for the year ended December 31, 2019. Be sure to label accounts relating to common shares separately from those relating to preferred shares

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