Amy Walt, owner of Tree Top Company, decides to start a new company that will be operated as a corporation. Earth Rock Incorporated (ERI). This company will sell outdoor clothing and equipment Earth Rock Incorporated had the following select transactions in 2021 (Click the icon to view the transactions.) Dec. 20: Declared a 3% common stock dividend when the market value of the stock was $9.00 per share Date Accounts and Explanation Debit Credit Dec. 20 1. Journalize the transactions. 2. Calculate the balance in Retained Earnings on December 31, 2021. Assume net income for the year was $463,000. 3. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Dec. 31: Paid the cash dividends. Date Accounts and Explanation Debit Credit Requirement 1. Journalize the transactions (Record debits first, then credits. Select the explanation on the last line of the journal entry table) Jan 1 Issued 40,000 shares of $5 par value common stock for a total of $240.000 Date Accounts and Explanation Debit Credit Dec. 31 Jan 1 Jan 10: Issued 30,000 shares of 2%, $7 par value preferred stock in exchange for land with a market value of $900,000 Dec 31: Distributed the stock dividend. Date Accounts and Explanation Credit Debit Date Credit Accounts and Explanation Debit Jan 10 Dec. 31 Dec. 15: Declared total cash dividends of $6,000 Requirement 2. Calculate the balance in Retained Earnings on December 31, 2021 Assume net income for the year was $453 000 Date Complete the table below to calculate the balance in Retained Earnings on December 31, 2021. (Complete all answer boxes. Enter a Debit Accounts and Explanation "for any zero Credit Dec. 15 Retained Earnings, Jan 1, 2021 Plus: Less: Retained Earnings, Dec 31, 2021 Requirements. Prepare the stockholders equity section of the balance sheet as of December 31, 2021. There was no preferred stock issued prior to the 2021 transactions