Reference no: EM13571075

The following are the transactions for Smiley, Inc.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> 1. The company is authorized to sell 1,000,000 shares of $10 par value common stock and 50,000 shares of $100 par value 6 percent preferred stock. 2. As of the end of the current year, the company has actually sold 550,000 shares of common stock at $12 per share 3. It has also sold 40,000 shares of preferred stock at $110 per share. 4. 40,000 shares have been repurchased at $60 per share and are currently being held in treasury to be used to meet the future requirements of a stock option plan that the company intends to implement.a. Prepare the general journal entries required to record all of the above transactions.