Early in the year Bill Sharnes and several friends organized a corporation called Sharnes Communications, Inc. The corporation was authorized to issue $50,000$ shares of $$100$ par value, $10$ percent cumulative preferred stock and $400,000$ shares of $$2$ par value common stock. The following transactions $($among others$)$ occurred during the year.

Jan. $6$ Issued for cash $20,000$ shares of common stock at $$14$ per share. The shares were issued to Sharnes and $10$ other investors.

Jan. $7$ Issued an additional $500$ shares of common stock to Sharnes in exchange for his services in organizing the corporation. The stockholders agreed that these services were worth $$7,000.$

Jan. $12$ Issued $2,500$ shares of preferred stock for cash of $$250,000.$

June $4$ Acquired land as a building site in exchange for $15,000$ shares of common stock. In view of the appraised value of the land and the progress of the company, the directors agreed that the common stock was to be valued for purposes of this transaction at $$15$ per share.

Nov. $15$ The first annual dividend of $$10$ per share was declared on the preferred stock to be paid December $20.$

Dec. $20$ Paid the cash dividend declared on November $15.$

Dec. $31$ After the revenue and expenses were closed into the Income Summary account, that account indicated a net income of $$147,200.$

Required:

a$.$ Prepare journal entries in general journal form to record the above transactions. Include entries at December $31$ to close the Income Summary account and the Dividends account.

b$.$ Prepare the stockholders' equity section of the Sharnes Communications, Inc., balance sheet at December $31.$