A. ( Record the journal entries for the transactions listed above (8 points))

B. (Prepare the stockholders' equity section of BYD Corporation's balance sheet as of December 31, 2015 (6 points).

Problem 1 (Equity 14 points) On January 1, 2015, BYD Corporation was incorporated. The corporate charter grants BYD Corp. the right to issue 100,000 shares of $25.00 par value, 5% cumulative and nonparticipating preferred stock, and 2,000,000 shares of $1.00 par value common stock. It then completed these transactions Issued 1,600,000 shares of common stock at $25 per share. Jan 25 Mar 1 Issued to Sanchez Corp. 65,000 shares of preferred stock for the following: o Machinery with a fair market value of $650,000 o A factory building with a fair market value of $812,500 o and, land with an appraised value of $975,000 Jul 21 Purchased 192,000 shares of common stock at $18.75 per share. (Use the cost method) Aug 15 Sold the 144,000 treasury shares at $30.00per share. Dec 31 Closed the Income Summary account. There was a $33,950,000 net income. Dec 31 Declared a $1.20 per share cash dividend on the common stock and declared the preferred dividend