On 1/1/2012, Byron Company completed a successful initial public offering (IPO) by issuing 100,000 shares of common stock ($1 par) for $600,000 and 1,000 shares of preferred stock ($100 par) for $100,000. The preferred stock carries a 5% dividend rate and is cumulative, but non-participating. At the time of the IPO, Byron Company had no retained earnings. 6. Suppose that on 1/1/14 Byron Company purchased 5,000 shares of its common stock at the then current market price of $10 per share. At the time, Byron’s management was considering retiring the shares, but had not yet made a firm decision. What accounting entry should Byron Company make in connection with the stock purchase? How does the stock repurchase affect Byron’s balance sheet and income statement? (Show all Calculations) 7. Suppose that on 12/30/14, Byron Company retired the shares of Byron common stock purchased on 1/1/14. What entries should Byron make to record the retirement? 8. Assume that during 2014 Byron Company reported a net income of $400,000, but did not pay any dividends. How much total equity should Byron report on 12/31/14? (Show all Calculations)