Choctaw Co. completed the following transactions in Year 1, the first year of operation: 1. Issued 22,000 shares of $10 par common stock for $10 per share. 2. Issued 3,200 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 1,200 shares of common stock as treasury stock for $12 per share. 4. Declared a $2,200 cash dividend on preferred stock. 5. Sold 700 shares of treasury stock for $14 per share. 6. Paid $2,200 cash for the preferred dividend declared in Event 4. 7. Earned cash revenues of $82,000 and incurred cash expenses of $43,000. 8. Appropriated $8,200 of retained earnings. Required a. Organize the transaction in accounts under an accounting equation. b. Prepare the stockholders' equity section of the balance sheet as of December 31, Year 1. Required A Required B Organize the transaction in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Acco the cell blank.) Event Assets Liabilities + CHOCTAW CO. Accounting Equation for the Year 1 Stockholders' Equity Paid-in Capital In Excess Treasury Treasury Stock Stock Cash Dividend Payable + Preferred Stock Common Stock + Retained Earnings Appropriated Retained Earnings Account Titles for Retained Earnings 1. + 220,000 + + ++ 2. 220,000/= 64,000= (14,400) = 64,000 + + + 3. | +++ + + + 4. 2,200 + + (2,200) + 5. 9,800 = + + + + + 6. = (2,200)| + + + + (2,200) 82,000/= (43,000) + + + + + + + + + + + + 7a. + + + 7b. + + + 82,000+ (43,000)| + (8,200)| + 28,600 + 8. + + + 8,200 8,200 Totals 316,200 = 0+ 64,000 + 220,000 + 0 0 + Complete this question by entering your answers in the tabs below. Required A Required B Prepare the stockholders' equity section of the balance sheet as of December 31, Year 1. (Negative amount should be indicated by a minus sign.) CHOCTAW CO. Balance Sheet (Partial) As of December 31, Year 1 Stockholders' equity Common stock $ 220,000 Preferred stock 64,000 Paid-in capital in excess of cost - TS $ 284,000 $ 8,200 Total Paid-In Capital Retained Earnings Appropriated Paid-in capital in excess of par Total Retained Earnings Less: Treasury Stock Total Stockholders' Equity 0 8,200 (14,400) $ 277,800