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

9. Appropriated $8,000 of retained earnings.

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

Options to choose from:

No journal entry required

Appropriated retained earnings

Cash

Common stock

Dividends

Dividends payable

Land

Operating expenses

Paid-in capital in excess of cost of treasury stock

Paid-in capital in excess of par value-common stock

Paid-in capital in excess of stated value-preferred stock

Preferred stock

Retained earnings

Service revenue

Treasury stock (Common stock)

Withdrawal by owner

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

Options to choose from:

1.

2.

3.

4.

5.

6.

7a.

7b.

8a.

8b.

8c.

9.

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

Options to choose from:

Appropriated retained earnings

Cash

Common stock

Dividends

Dividends payable

Land

Operating expenses

Paid-in capital in excess of cost of treasury stock

Paid-in capital in excess of par value-common stock

Paid-in capital in excess of stated value-preferred stock

Preferred stock

Retained earnings

Service revenue

Unappropriated retained earnings

Withdrawal by owner

Add: Treasury stock

Less: Treasury stock

Prepare journal entries to record these transactions. (Do not round your intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet DEFFGH Issued 20,000 shares of $10 par common stock for $10 per share. Record the transaction. Note: Enter debits before credits. Post the entries to T-accounts. 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.)