Ayayai Corporation is authorized to issue 20,000 shares of $50 par value, 10% preferred stock and 120,000 shares of $5 par value common stock. On January 1, 2022, the ledger contained the following stockholders equity balances.

a. Enter the beginning balances in the accounts, and post the journal entries to the stockholders equity accounts. (Post entries in the order of journal entries presented in the previous part.)

b. Prepare a stockholders equity section at December 31, 2022. (Enter the account name only and do not provide the descriptive information provided in the question.)

Dec. 1 Cash 56,250 Common Stock 37,500 Paid-in Capital in Excess of Par-Common Stock 18.750 Dec. 31 4 Income Summary 255,000 Retained Earnings 255,000