PIL-SA. Stockholders' Equity Transactions, Journal Entries, and T-Accounts The stockholders' equity of Black Corporation at January 1 follows: L04, 5, 6 .......... $ 500,000 8 Percent preferred stock, $100 par value, 20.000 shares authorized; 5,000 shares issued and outstanding .. Common stock, $1 par value, 100,000 shares authorized: 40,000 shares issued and outstanding ... Paid-in capital in excess of par value-Preferred stock. ........ Paid-in capital in excess of par value-Common stock ........ Retained earnings ........... Total Stockholders' Equity............................. 40.000 200,000 800,000 625,000 $2,165,000 The following transactions, among others, occurred during the year: Jan Announced a 4-for-1 common stock split, reducing the par value of the common stock to $0.25 per share. Mar. 31 Converted $75,000 face value of convertible bonds payable (the book value of the bonds was $83,000) to common stock. Each $1,000 bond converted to 110 shares of common stock. (Record common stock entry in whole dollars. Round up.) June | Acquired equipment with a fair market value of $90,000 in exchange for 300 shares of preferred stock. Sept. Acquired 15,000 shares of common stock for cash at S20 per share. Nov. 21 Issued 5,000 shares of common stock at $22 cash per share. Dec. 28 Sold 1.000 treasury shares at $23 per share. 31 Closed net income of $145,000, to the Retained Earnings account. 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 for the given transactions and post them to the 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. PII-9A. Stockholders' Equity Section of the Balance Sheet Using your analysis from P11-8A, prepare the stockholders' equity section of the Black Corporation's balance sheet. 4, 5, 6,8