RecordingTransactions Affecting Stockholders' Equity  Gerald Company was granted a charter that authorized the following capital stock:

Commonstock: 100,000 shares, par value per share is $40.
Preferredstock: 8 percent, par $5, 20,000 shares.
Duringthe first year, 2009, the following selected transactions occurred in the order given:
a. Sold30,000 shares of the common stock at $40 cash per share and 5,000 shares of the preferred
stockat $26 cash per share.
b. Issued2,000 shares of preferred stock when the stock was selling at $32.
c. Repurchased 3,000 shares of the common stock sold earlier; paid cash, $38 per share.

Required:

Provide the journal entries necessary for each transaction
Prepare the stockholder's equity section of the balance sheet at December 31, 2009.