Man Tote Corporation was authorized by its charter to issue 160,000 shares of 10%, $100 par cumulative preferred stock and 300,000 shares of $2 par value common stock. In their first year of...

Extracted text: Man Tote Corporation was authorized by its charter to issue 160,000 shares of 10%, $100 par cumulative preferred stock and 300,000 shares of $2 par value common stock. In their first year of operations, they had the following transactions. + A. Sold 100,000 shares of common stock for $800,000 + B. Sold 6,000 shares of preferred stock for $720,000. + C. Purchased 10,000 shares of the Company's outstanding common stock for $6.00 per share for the treasury. + D. Reissued 4000 shares of the company stock that was acquired in C at a price of $8.00 + E. Reissued 3000 shares of Ihe company stock that was acquired in C at a price of $5.00 + F. Declared a dividend of $.15 cents per share of common stock and for the amount due the preferred stock. + G. Paid the required dividends Required: (a) Prepare the necessary journal entries (b) Prepare the stockholders' equity section of the balance sheet.