Choctaw Co. completed the following transactions in 2018, the first year of operation:

1. Issued 24,000 shares of $10 par common stock for $10 per share.
2. Issued 3,400 shares of $20 stated value preferred stock for $20 per share.
3. Purchased 1,400 shares of common stock as treasury stock for $12 per share.
4. Declared a $2,400 cash dividend on preferred stock.
5. Sold 800 shares of treasury stock for $14 per share.
6. Paid $2,400 cash for the preferred dividend declared in Event 4.
7. Earned cash revenues of $86,000 and incurred cash expenses of $45,000.
8. Appropriated $8,400 of retained earnings.

Required

1. Organize the transaction in accounts under an accounting equation.

2. Prepare the stockholders equity section of the balance sheet as of December 31, 2018.