After looking into debt financing through notes, mortgage, and bonds payable, Nature Gnome Company decides to raise additional capital for a planned business expansion. The company will be able to acquire cash as well as land adjacent to its current business location. Before the following transactions, the balance in Common Stock on January 1, 2027 was $200,000 and included 200,000 shares of common stock issued and outstanding. (There was no Paid-In Capital in Excess of Par-Common.) Nature Gnome Company had the following transactions in 2027 : 1. Journalize the transactions. 2. Calculate the balance in Retained Earnings on December 31, 2027. Assume the balance on January 1,2027 was $6,250 and net income for the year was $463,000. 3. Prepare the stockholders' equity section of the balance sheet as of December 31,2027 . There was no preferred stock issued prior to the 2027 transactions. Jan. 1: Issued 70,000 shares of $1 par value common stock for a total of $280,000. Jan 10: Issued 10,000 shares of 2%,$12 par value preferred stock in exchange for land with a market value of $1 Dec, 15: Declared total cash dividends of $25,000. Dec. 20: Declared a 2% common stock dividend when the market value of the stock was $7.00 per share. Dec. 31: Paid the cash dividends. Dec. 31: Distributed the stock dividend. Requirement 2. Caloulate the balance in Retained Eamings on December 31, 2027. Assume the balance on January 1, 2027 was $6,250 and net inconse for the year was $463,000 Complete the table below to calculate the balance in Retained Eamings on December 31, 2027. Requirement 3. Prepare the stockholders' equity section of the balance sheet as of December 31,2027 . There was no preferred stock issued prior to the 2027 transactions. Review the journal entries from Requirement 1