In $2018,$ Joanna and some of her friends invested money to start a company named GIRLZ Corporation. The following transactions occurred during $2018.$

Jan The corporate charter authorized $66,000$ shares of $4\%,$$$90$ par value cumulative preferred stock and unlimited shares of $$61$ par value common stock.

Jan

$6$

Issued $169,000$ common shares at $$13$ per share to Elizabeth and other investors.

Jan Issued another $590$ common shares to Elizabeth in exchange for her services in organizing the corporation. The stockholders agreed that the services were worth $$11,800.$

Jan

Issued $4,400$ preferred shares for $$396,000.$

$12$

Jan I

$14$

$14$

Nov

$15$

Dec

Dec

$20$

Paid the dividends declared on preferred stock.

Dec Estimated income tax expense of $$39,400.$ However, the actual amount of income tax due for this period based on tax laws is $31$ determined to be $$35,800.$

GIRLZ Corporation generated a $$102,000$ net income during the year. The company uses the retained earnings method to record dividends.

a$)$ Prepare the journal entries to record the above transactions in $2018.$

Do not enter dollar signs or commas in the input boxes.

b$)$ Prepare the statement of retained earnings for the year ended December $31,2018.$

$\backslash$table$[[$GIRLZ Corporation$],[$Calculation of Retained Earnings$],[$For the Year Ended December $31,2018,],[$Opening Balance,$],[$Add: Net Income,$],[$Less: Cash Dividends $-$ Preferred,$],[$Balance $-$ December $31,2018,]]$

c$)$ Prepare the shareholders' equity section of the balance sheet as at December $31,2018.$

$\backslash$table$[[$GIRLz Corporation$],[$Balance Sheet $($Partial$)],[$December $31,2018,],[$Stockholders$\text{'}$ Equity,$],[$Preid$-$In Capital,$],[$Common Stock, $$6$ par value, unlimited authorized, $179,590$ issued and outstanding,$],[$Additional Paid$-$In Capital,$],[$Total Paid$-$In Capital,$],[$Retained Earnings,$],[$Total Stockholders' Equity,$]]$