Reference no: EM132454022

Problem - Watson Inc. was incorporated on 1/2/18. Their corporate charter authorized the following capital stock, Preferred stock: 7%, par value $100 per share, 100,000 shares. Common stock: $1 par value, 500,000 shares .

1/19/18 issued 100,000 shares of common stock for $17 cash per share

1/31/18 issued 3,000 shares of preferred stock for $115 cash per shares

11/1/18 repurchased 30,000 shares of common stock for $22 cash per share

12/1/18 declared and paid a total dividend of $95,000

Required - How to prepare the journal entry for each transaction above.