Stockholders’ Equity Clarke Corporation was organized during 1979. At the end of 2009, the equity section of the balance sheet was:

During 2009, the following stockholders’ equity transactions occurred in chronological sequence:

a. Issued 800 shares of common stock at $11 per share.

b. Reissued 1,200 shares of treasury stock at $12 per share.

c. Issued 300 shares of preferred stock at $33 per share.

d. Reissued 400 shares of treasury stock at $9 per share.

e. Declared and paid a dividend large enough to meet the current-dividend preference on the preferred stock and to pay the common stockholders $1.50 per share.

f. Net income for 2009 was $70,000, which included $400,000 of revenues and $330,000 of expenses.
g. Closed the dividends accounts for 2009.
Required:
1. Journalize the transactions.
2. Set up T-accounts with beginning balances and post the journal entries to the T-accounts, adding any necessary new accounts. (Assume a beginning balance of $20,000 for the cash account.)
3. Prepare the stockholders’ equity section of the balance sheet as of December 31, 2009.

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Contributed capital: Preferred stock (8%, $30 par, 6,000 shares authorized, 5,000 shares issued and outstanding) ... $150,000 Common stock ($5 par, 50,000 shares authorized, 20,000 shares issued, 17,000 shares outstanding) 100,000 Paid-in capital in excess of par, common stock Total contributed capital Retained earnings Total contributed capital plus retained earnings Less treasury stock (3,000 shares of common stock at cost, $10 per share) Total stockholders' equity 80,000 $330,000 140,000 $470,000 (30,000) $440,000