Please do both charts and the balance sheet too. Thank you.

M N O P 0 R S HHEC A B D E F G H J Task 1: Francesca and Sophia have decided to convert HHEC from a sole proprietorship to a corporation. During the year, HHEC Corp. issues common stock and pays dividends on that common stock. Sophia gives you a list of transactions to record the entries for the issuance of common stock and the payment of cash dividends. At the end of Year 2, Sophia and Francesca would like to know how much HAPPY HOME Environmental Cleaning is in retained earnings HHEC Corp. and what the ending value of stockholders' equity is. 1 2 3 A. On January 1, Year 2, HHEC Corporation issues 10,000 shares of $100 par 10% preferred stock for $100 per share 4 B. On January 1, Year 2 HHEC Corporation issues 25,000 shares of $20 par value common stock with a par value of $20, for $25 per share 5 C. On March 1, Year 2, HHEC declares a $1 cash dividend per share on its common stock, to stockholders of record on March 15, payable April 1. 6 D. On March 1, Year 2, HHEC declared a 10% cash dividend on its preferred stock payable March 15. 7 E. On June 1, Year 2, HHEC declared a 15% Common stock dividend to stockholders of record on June 15, distributable June 30. The market price of the stock was $30 per share. 8 F. HHEC earned net income for Year 2 of $255,000 9 10 For Part A please journalize the transactions. Please note there is Task 1B on next tab. 11 12 ANSWER 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Unit 1-Challenge 2-Task 1A Unit 1-Challenge 2-Task 1B B D E F G H L M N HHEC Task 1b: At the end of Year 2, Sophia and Francesca would like to know how much is in retained earnings HHEC Corp. and what the ending HAPPY HOME value of stockholders' equity is. Environmental Cleaning 1 2 3 Using your journal entries from Task 1a 4 B) Prepare a statement of Retained Earnings, assuming the beginning balance is $35,000 5 C) Prepare a Stockholders Equity section 6 7 Answer: 8 HHEC Corporation 9 Statement of Retained Earnings 10 For the year ended December 31, Year 2 11 12 13 14 15 16 17 18 19 20 HHEC Corporation 21 Balance Sheet (partial) 22 For the year ended December 31, Year 2 23 21 Unit 1-Challenge 2-Task 1A Unit 1-Challenge 2-Task 1B +