Problem 8-26 Treasury stock transactions and appropriation of retained earnings LO 8-5, 8-6, 8- Choctaw Co. completed the following transactions in 2018, the first year of operation: 1. Issued 20,000 shares of $10 par common stock for $10 per share. 2. Issued 3,000 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 1,000 shares of common stock as treasury stock for $12 per share. 4. Declared a $2,000 cash dividend on preferred stock. 5. Sold 500 shares of treasury stock for $14 per share. 6. Paid $2,000 cash for the preferred dividend declared in Event 4. 7. Earned cash revenues of $78,000 and incurred cash expenses of $41,000 8. Appropriated $8,000 of retained earnings Required a. Organize the transaction in accounts under an accounting equation. b. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018