Choctaw Co. completed the following transactions in Year 1, the first year of operation: 1. Issued 20,000 shares of $10 par common stock for $10 per share. 2. Issued 3,000 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 1,000 shares of common stock as treasury stock for $12 per share. 4. Declared a $2,000 cash dividend on preferred stock. 5. Sold 500 shares of treasury stock for $14 per share. 6. Paid $2,000 cash for the preferred dividend declared in Event 4. 7. Earned cash revenues of $78,000 and incurred cash expenses of $41,000. 8. Appropriated $8,000 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. Event Assets Liabilities + CHOCTAW CO. Accounting Equation for the Year 1 Stockholders' Equity Paid-in Capital In Excess Treasury Treasury Stock Stock Cash II Dividend Payable Preferred Stock Common Stock Retained Earnings Appropriated Retained Earnings Account Titles for Retained Earnings 1. 2. +++ ++ + + + + + + + + + + + 3. . 4. + 5. ++ 6. 7a. + + + + + + + + + + + + + + 7b. + + + + + + + + + + + 8. Totals CHOCTAW CO. Balance Sheet (Partial) As of December 31, Year 1 Stockholders' equity Total Paid-In Capital Retained Earnings Total Retained Earnings Total Stockholders' Equity