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

Issued $26,000$ shares of $$15$ par common stock for $$15$ per share.

Issued $3,600$ shares of $$25$ stated value preferred stock for $$25$ per share.

Purchased $1,600$ shares of common stock as treasury stock for $$17$ per share.

Declared a $$2,600$ cash dividend on preferred stock.

Sold $1,000$ shares of treasury stock for $$19$ per share.

Paid $$2,600$ cash for the preferred dividend declared in Event $4.$

Earned cash revenues of $$90,000$ and incurred cash expenses of $$47,000.$

Closed revenue, expense, and dividend accounts to the retained earnings account.

Appropriated $$8,600$ of retained earnings.

Required

a$-1.$ Prepare journal entries to record these transactions.

a$-2.$ Post the entries to T$-$accounts.

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