10-84A (Algorithmic) Statement of Stockholders' Equity At the end of 2019, Jeffco Inc. had the following equity accounts and balances: Common stock, $10 par Additional paid-in capital-common stock Retained earnings $800,000 200,000 279,000 During 2020, Jeffco engaged in the following transactions involving its equity accounts: a. Sold 8,000 shares of common stock for $35 per share. b. Sold 1,000 shares of 9%, $120 par preferred stock at $125 per share. c. Declared and paid cash dividends of $14,000. d. Repurchased 600 shares of treasury stock (common) for $52 per share. e. Sold 100 of the treasury shares for $58 per share. Required: 1. Prepare the journal entries for Transactions a through e. 2020 a. Cash Common Stock Additional Paid-In Capital-Common Stock (Record sale of common stock) b. Cash C. d. e. Preferred Stock Additional Paid-In Capital-Preferred Stock (Record sale of preferred stock) Retained Earnings (or Dividends) Cash (Record declaration and payment of dividends) Treasury Stock Cash (Record purchase of treasury shares) Cash Additional Paid-In Capital-Treasury Stock Treasury Stock (Record reissue of treasury shares) 2. Assume that 2020 net income was $85,000. Prepare a statement of stockholders' equity at December 31, 2020. Jeffco, Inc. Balance Sheet (Partial) December 31, 2020 Stockholders' equity: Preferred stock, 9%, $120 par Additional paid-in capital: Preferred stock Common stock Treasury stock Total capital stock Retained earnings Less: Treasury stock, at cost Total stockholders' equity