ABC Inc. began a very lucrative consulting operation on October 1, 2011. It is authorized to issue 100,000 shares of $0.50 cumulative preferred shares and 500,000 common shares.

Oct. 1 Issued for cash, 1000 shares of the preferred shares at $4.00 each

Oct. 10 Issued for cash, 50,000 shares of the common stock at $3.00 per share.

Oct. 15 ABC Inc. purchased land for $155,000, paying cash of $55,000 and borrowing the balance from the bank (to be repaid in two years).

Oct. 20 15,000 preferred shares were issued today for total cash preceeds of $70,500.

Oct. 24 In addition to the delcaration of the annual dividend on the preferred shares, dividends of $22,400 were declared on the common shares today, payable November 15, 2011.

Oct. 31 Revenues of $750,000 were earned during the month; all cash. Expenses, all cash, totalling $250,000 were incurred in October. Close the Income SUmmary and dividend accounts

1. Prepare journal entries for each of the transactions listed.