4, 5, 6 P11-8A. Stockholders' Equity Transactions, Journal Entries, and T-Accounts The stockholders of Fremantle Corporation at January 1 follows 8 Percent preferred stock, $100 par value, 20,000 shares authorized; 5,000 shares issued and outstanding. Common stock, $1 par value, 100,000 shares 500,000 authorized; 40,000 shares issued and outstanding Paid-in capital in excess of par value-Preferred stock . . . . . . .. . . . . . . . . . . . . . . Paid-in capital in excess of par value-Common stock . . . . . 40,000 200,000 The following transactions, among others, occurred during the year: Jan. Mar. 1 Announced a 2-for-1 common stock split, reducing the par value of the common stock to $0.50 per share. 31 Converted $75,000 face value of convertible bonds payable (the book value of the bonds was $83,000) to common stock. Each $1,000 bond converted to 110 shares of common stock June 1 Acquired equipment with a fair market value of $45,000 in exchange for 300 shares o preferred stock. Acquired 15,000 shares of common stock for cash at $20 per share. Issued 5,000 shares of common stock at $22 cash per share. Sold 1,000 treasury shares at $23 per share. 1 Sept. Nov. Dec. 21 28 31 Closed net income of $125,000, to the Retained Earnings account. Required a. Set up T-accounts for the stockholders' equity accounts as of the beginning of the year the January I balances. Prepare journal entries for the given transactions and post them to thstcion.bd additional Taccounts needed). Do not prepare the journal entry for the Dec. 31 tra post the appropriate amount to the Retained Earnings T-account. Determine the for the stockholders' equity accounts. (set b