1. Raven, Inc., has authorized 100,000 common shares and 50,000 preferred shares. The company completed the following transactions in Year l, its first year of operation: A. Issued 25,000 shares of $1 par common stock at $50. B. Issued 2,500 shares of 6.0%, $100 stated value preferred stock at $106 per share. C. Purchased 500 shares of common stock as treasury stock at $55 per share. D. Declared the dividend on the preferred stock. E. Sold 250 shares of treasury stock for $60 per share. F. Paid the cash dividend on preferred stock that was declared in Event D. G. Earned cash revenue of $120,000 and incurred cash operating expenses of $74,000. H. Closed revenue, expense, and dividend accounts to the retained earnings account.

Required: 1. Prepare in good form journal entries to record these transactions. 2. Prepare the stockholders equity section of the balance sheet as of December 31, Year 1.