Pinball Texas Group, Inc. completed the following transactions during Year 1, its first year of operation: A. Issued 30,000 shares of $1 par common stock for $45 per share. The company has 200,000 common shares authorized. B. Issued 10,000 shares of $100 par, 7.0%, preferred stock at $110 per share. The company has 50,000 preferred shares authorized. C. Declared and paid the annual cash dividend to preferred shareholders. D. Declared and issued a 5.0% stock dividend on the common stock. The common stocks market value at the dividend declaration date was $52 per share. E. Purchased 1,000 treasury shares at $60 per share. F. Later that year, issued a 3-for-l split on the outstanding shares of common stock. G. Earned $312,000 of cash revenues and paid $173,000 of cash operating expenses. H. Closed the revenue, expense, and dividend accounts to retained earnings.

Required: 1. Prepare in good form the journal entries for the Year 1 transactions. 2. Prepare the stockholders equity section of the balance sheet at the end of year l.