Tempe Incis Authorized to Issue 100,000,$5,cumulative,preferred Shares,and an Unlimited Number of of Common

Essay

Tempe Inc.is authorized to issue 100,000,$5,cumulative,preferred shares,and an unlimited number of common shares.Prepare journal entries to record the following transactions that occurred during the first 3 months of operations:
$\begin{array}{|l|l|}\hline\text { May-05 }&\text { Sold 2,000 preferred shares for } \$ 14 \text { per share. }\\\hline \text { Jun-16 } & \begin{array}{l}\text { Exchanged } 4,000 \text { preferred shares for equipment with a fair market value of } \\\$ 55,000\end{array} \\\hline \text { Jul-23 } & \text { Sold 8,000 common shares and } \$ 21 \text { per share. }\\\hline\end{array}$