operation:

Year $1$

January $5$ Sold $15,900$ shares of the $$5$ par common stock for $$7$ per share.

$12$ Sold $1,900$ shares of the $6$ percent preferred stock for $$85$ per share.

April $5$ Sold $21,200$ shares of the $$5$ par common stock for $$9$ per share.

December During the year, earned $$305,000$ in cash revenue and paid $$244,700$ for cash operating expenses.

$31$

$31$ Declared the cash dividend on the outstanding shares of preferred stock for Year $1.$ The dividend will be paid on

February $15$ to stockholders of record on January $10,$ Year $2.$

Year $2$

February $15$ Paid the cash dividend declared on December $31,$ Year $1.$

March $3$ Sold $2,850$ shares of the $$75$ par preferred stock for $$95$ per share.

May $5$ Purchased $450$ shares of the common stock as treasury stock at $$10$ per share.

December $31$ During the year, earned $$253,800$ in cash revenues and paid $$178,100$ for cash operating expenses.

Required $31$ Declared the annual dividend on the preferred stock and a $$0\mathrm{.}50$ per share dividend on the common stock.

a$.$ Organize the transaction data in accounts under an accounting equation.

b$.$ Prepare the stockholders' equity section of the batance sheet at December $31,$ Year $1.$

c$.$ Prepare the balance sheet at December $31,$ Year $2.$