Byrd Company’s Contributed Capital section of its January 1, 2019, balance sheet is as follows:
During 2019, Byrd entered into the following transactions:
Jan. 4 Established a compensatory share option plan for its key executives. The options vest after a 3-year service period. The estimated fair value of the options expected to be exercised is $81,000.
Apr. 23 Sold 300 shares of preferred stock at $55 per share.
June 7 Sold 600 shares of common stock at $17 per share.
Sept. 21 Purchased building by paying $9,000 cash and issuing 800 shares of common stock and 450 shares of preferred stock. Common and preferred stock are currently selling for $19 and $57 per share, respectively.
Oct. 12 Reacquired 900 shares of common stock at $19.50 per share. The company uses the cost method to account for treasury stock.
Nov. 15 Issued for $32,000 a combination of 700 shares of common stock and 12% bonds with a face value of $20,000. The common stock is currently selling for $18 per share. No market value exists for the bonds.
Dec. 14 Reissued the 900 shares of treasury stock at $20.50 per share.
28 Distributed a $3.00-per-share dividend on all outstanding preferred stock and a $1.50-per-share dividend on all common stock outstanding on this date (debit Retained Earnings and credit Cash for each dividend).

Required:
1. Prepare memorandum and journal entries to record the preceding transactions.
2. Prepare the Contributed Capital section of Byrd’s December 31, 2019, balance sheet.

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Preferred stock (6%, $50 par, 8,000 shares authorized, 3,400 shares issued and outstanding) Common stock ($10 stated value, 30,000 shares authorized, 12,000 shares issued and outstanding) Additional paid-in capital on preferred stock Additional paid-in capital on common stock Total contributed capital $170,000 120,000 12,800 72,000 $374,800