PART A-Record the following 2018 transctions for the Sears Corporation in the journal. Additional information you will need: when Sears began operations several years ago, they were authorized to issue 200,000 shares of 7%, $100 par value preferred stock and 6,000,000 shares of $4 par value common stock.

Jan.	1	Issued 500,000 shares of common stock for cash at $11 per share.
Feb.	2	Issued 30,000 shares of preferred stock for cash at $105 per share.
Mar.	3	Declared a cash dividend on the preferred stock $385,000.
Apr.	4	Discovered a $13,000 overstatement of 2015 depreciation.
May	5	Paid the cash dividend declared of March 3.
June	6	Issued 4,000 shares of common stock for land that was advertised for sale at $51,000. The stock market price of the stock is $15 per share.
Sept.	9	Sears purchased 8,000 shares of its own common stock at $14 per share.
Oct.	10	Sold 3,000 shares of treasury stock for $18 per share
Nov.	11	Declared a $0.60 cash dividend per share on common stock for a total of $896,400.
Dec.	31	Record the net income for the year, $950,000.

PART B. Based on the Sears Corp.partial trial balance below, prepare (a) a retained earnings statement for the year and (b) a stockholders equity section at December 31, 2018. You may need information from A to complete this section.

Sears Corporation

Adjusted Trial Balance-partial

December 31, 2018

		Debit		Credit
Preferred Stock....................................................................... Common Stock........................................................................ Paid-in-capital in excess of par value-Preferred...................... Paid-in-capital in excess of par value-Common...................... Retained Earnings................................................................... Cash Dividends-Preferred Stock............................................ Cash Dividends-Common Stock............................................. Treasury Stock (5,000 shares)................................................. Paid-in-capital from Treasury Stock........................................ *The beginning Retained Earnings balance is $3,750,000, then adjusted for the prior period adjustment		385,000 896,400 70,000		5,500,000 5,976,000 180,000 4,952,000 3,763,000* 12,000