P11-3B. Stockholders' Equity: Transactions and Balance Sheet Presentation The stockholders' equity accounts of Scott Corporation at January 1 follow: Common stock, $1 par value, 350,000 shares authorized 150,000 shares issued and outstanding. Paid-in capital in excess of par value. Retained earnings . . $150,000 346,000 During the year, the following transactions occurred: 5 Issued 10,000 shares of common stock for S15 cash per share. 18 Purchased 4,000 shares of common stock as treasury stock at $14 cash per share. 12 Sold one-fourth of the treasury shares acquired January 18 for S17 per share. 17 Sold 600 shares of the remaining treasury stock for S13 per share. 1 Issued 5,000 shares of eight percent, S25 par value preferred stock for $35 cash per Jan. Mar. July Oct. share. These are the first preferred shares issued out of 50,000 authorized shares 31 Closed the net income of $85,000 to the Retained Earnings account. Dec. Required a. Set up T-accounts for the stockholders" equity accounts as of the beginning of the year and enter the January 1 balances. b. Prepare journal entries to record the foregoing transactions and post to T-accounts (set up any additional T-accounts needed). Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders' equity accounts. c. Prepare the December 31 stockholders' equity section of the balance sheet