Choctaw Company completed the following transactions in Year 1, the first year of operation: 1. Issued 38,000 shares of $12 par common stock for $12 per share. 2. Issued 4,800 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 2,800 shares of common stock as treasury stock for $14 per share. 4. Declared a $3,800 cash dividend on preferred stock. 5. Sold 1,800 shares of treasury stock for $16 per share. 6. Paid $3,800 cash for the preferred dividend declared in Event 4. 7. Earned cash revenues of $114,000 and incurred cash expenses of $59,000. 8. Closed revenue, expense, and dividend accounts to the retained earnings account. 9. Appropriated $9,800 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. Beginning Balance Cash 7a Dividends Payable Beginning Balance 456,000 39,200 3 3,800 3,800 96,000 3,800 59,000 76. Ending Balance 114,000 564,000 Ending Balance Retained Earnings Appropriated Retained Earnings Beginning Balance Beginning Balance 9,800 Ending Balance 9,800 Ending Balance Preferred Stock Common Stock Beginning Balance Beginning Balance 96,000 456,000 456,000 Ending Balance 96,000 Ending Balance Paid-in Capital in Excess of Cost of Treasury Stock Treasury Stock Beginning Balance Beginning Balance 3,600 39,200 25,200 Ending Balance 3,600 Ending Balance 14,000 Dividends Beginning Balance Ending Balance Service Revenue Beginning Balance Ending Balance 114,000 114,000 Prepare a balance sheet as of December 31, Year 1. (Do not round your intermediate calculations. Amounts to be deducted should be indicated with minus sign.) CHOCTAW COMPANY Balance Sheet As of December 31, Year 1 bok Assets sk rences: Total assets Liabilities Stockholders' equity Total Paid-In Capital Retained Earnings: Total Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 0 0 0 0 $ 0