1. Journalize the transactions. 2. Calculate the balance in Retained Earnings on December 31, 2021. Assume net income for the year was $454,000. 3. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021 Alice Winter, owner of Tree Top Company, decides to start a new company that will be operated as a corporation, Earth Rock Incorporated h Earth Rock Incorporated (ERI). This company will sell outdoor clothing and equipment. (Click the icon to view the Read the requiremena Requirement 1. Joumalize the transactions. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Jan. 1: Issued 20,000 shares of $1 par value common stock for a total of $200,000. Accounts and Explanation Credit Jan. 1 Date Debit Jan 10: Issued 10,000 shares of 10%, $5 par value preferred stock in exchange for land with a market value of $100,000. Date Accounts and Explanation Debit Credit Jan. 10 Dec. 15: Declared total cash dividends of $50,000. Date Accounts and Explanation Debit Credit Dec. 15 Dec. 20: Declared a 5% common stock dividend when the market value of the stock was $13.00 per share. Date Accounts and Explanation Debit Credit Dec. 20 Dec. 31: Paid the cash dividends. Dec. 31: Paid the cash dividends. Date Accounts and Explanation Debit Credit Dec. 31 Dec. 31: Distributed the stock dividend. Date Accounts and Explanation Debit Credit Dec. 31 Requirement 2. Calculate the balance in Retained Eamings on December 31, 2021. Assume net income for the year was $454,000. Complete the table below to calculate the balance in Retained Earnings on December 31, 2021. (Complete all answer boxes. Enter a "d" for any zero balances.) Retained Earnings, Jan 1, 2021 Plus: Less: Retained Earnings, Dec 31, 2021 Requirement 3. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. There was no preferred stock issued prior to the 2021 transactions. Review the joumal entries from Requirement 1. Earth Rock Incorporated Balance Sheet (Partial) December 31, 2021 Paid-In Capital Total Paid-in Capital Total Stockholders' Equity