Choctaw Company completed the following transactions in Year 1 , the first year of operation: 1. Issued 34,000 shares of $10 par common stock for $10 per share. 2. Issued 4,400 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 2,400 shares of common stock as treasury stock for $12 per share. 4. Declared a $3,400 cash dividend on preferred stock. 5. Sold 1,500 shares of treasury stock for $14 per share. 6. Paid $3,400 cash for the preferred dividend declared in Event 4. 7. Earned cash revenues of $106,000 and incurred cash expenses of $55,000. 8. Closed revenue, expense, and dividend accounts to the retained earnings account. 9. Appropriated $9,400 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. Journal entry worksheet EFGHL Issued 34,000 shares of $10 par common stock for $10 per share. Record the transaction. Note: Enter debits before credits. Journal entry worksheet Issued 4,400 shares of $20 stated value preferred stock for $20 per share. Record the transaction. Note: Enter debits before credits. Journal entry worksheet Purchased 2,400 shares of common stock as treasury stock for $12 per share. Record the transaction. Note: Enter debits before credits. Journal entry worksheet Declared a $3,400 cash dividend on preferred stock. Record the transaction. Note: Enter debits before credits. Sold 1,500 shares of treasury stock for $14 per share. Record the transaction. Note: Enter debits before credits. Journal entry worksheet Paid $3,400 cash for the preferred dividend declared in Event 4. Record the transaction. Note: Enter debits before credits. Journal entry worksheet F Earned cash revenues of $106,000. Record the transaction. Note: Enter debits before credits. worksheet A Incurred cash expenses of $55,000. Record the transaction. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. transaction/event, select "No journal entry required" (Do not round your intermediate calculations. If no entry is requ transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet A . E F F G H I Record the entry to close the operating expense account. Note: Enter debits before credits. Record the entry to close the dividend account. Note: Enter debits before credits. Journal entry worksheet Appropriated $9,400 of retained earnings. Record the transaction. Note: Enter debits before credits. Post the entries to Taccounts. should be indicated with minus sign.)
