One Co. completed the following transactions in 2011, the first year of operation:

1. Issued 20,000 shares of \(\$ 5\) par common stock for \(\$ 5\) per share.

2. Issued 1,000 shares of \(\$ 20\) stated value preferred stock for \(\$ 20\) per share.

3. Purchased 1,000 shares of common stock as treasury stock for \(\$ 7\) per share.

4. Declared a \(\$ 1,500\) cash dividend on preferred stock.

5. Sold 500 shares of treasury stock for \(\$ 10\) per share.

6. Paid \(\$ 1,500\) cash for the preferred dividend declared in Event 4.

7. Earned cash revenues of \(\$ 54,000\) and incurred cash expenses of \(\$ 32,000\).

8. Closed revenue, expense, and dividend accounts to the retained earnings account.

9. Appropriated \(\$ 5,000\) of retained earnings.

Required

a. Prepare journal entries to record these transactions and post them to T-accounts.

b. Prepare a balance sheet as of December \(31,2011\).