Choctaw Company completed the following transactions in Year $1,$ the first year of operation.

Issued $20,000$ shares of $$10$ par common stock for $$10$ per share.

Issued $3,000$ shares of $$20$ stated value preferred stock for $$20$ per share.

Purchased $1,000$ shares of common stock as treasury stock for $$12$ per share.

Declared a $$2,000$ cash dividend on preferred stock.

Sold $500$ shares of treasury stock for $$14$ per share.

Paid $$2,000$ cash for the preferred dividend declared in Event $4.$

Earned cash revenues of $$78,000$ and incurred cash expenses of $$41,000.$

Appropriated $$8,000$ of retained earnings.

Required

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

$2.$ Prepare a balance sheet as of December $31,$ Year $1.$