Accounting for Shareholder Equity (36 points) On January 1, 2022, BYD Corporation was incorporated. The corporate charter grants BYD Corp. the right to issue 15,000 shares of $50.00 par value, 3% cumulative and nonparticipating preferred stock, and 225,000 shares of $1.00 par value common stock. It then completed these transactions. Jan 25 Issued 180,000 shares of common stock at $25 per share. Mar 1 Issued to Sanchez Corp. 9,750 shares of preferred stock for the following: o Machinery with a fair market value of $195,000 o A factory building with a fair market value of $243,750 o and, land with an appraised value of $292,500 Jul 21 Purchased 21,600 shares of common stock at $17.50 per share (Use the cost method). Aug 15 Sold 16,200 treasury shares at $28.00 per share. Dec 31 Closed the Income Summary account. There was a $4,185,000 net income. Dec 31 Declared a $0.80 per share cash dividend on the common stock and declared the preferred dividend.

Please answer the following questions: (a) Record the journal entries for the transactions listed above (22 points). (b) Prepare the stockholders' equity section of BYD Corporation's balance sheet as of December 31, 2022 (14 points).