QUESTION 1 Partially correct 68.00 points out of 114.00 P Flag question Stockholders' Equity: Transactions and Balance Sheet Presentation The stockholders' equity accounts of Windham Corporation at January 1 appear below: 8 Percent preferred stock, $25 par value, 50,000 shares authorized; 6,800 shares issued and outstanding $170,000 Common stock, $10 par value, 200,000 shares authorized; 50,000 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 500,000 68,000 200,000 270,000 During the year, the following transactions occurred: Jen. 10 Issued 35,000 shares of common stock for $17 cash per share. 23 Purchased 10,000 shares of common stock as treasury stock at $19 per share Mar. 14 Sold one-half of the treasury shares acquired January 23 for $21 per share. July 15 Issued 3,500 shares of preferred stock in exchange for equipment with a fair market value of $128,000. Nov. 15 Sold 2,000 of the treasury shares acquired January 23 for $24 per share Dec. 31 Closed the net income of $59,000 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. HINT: Complete part b. below prior to entering T-account data. Cash Preferred Stock Common Stock Jan.10 595,000 Beg- Beg. 500,000