Stockholders' Equity: Transactions and Balance Sheet Presentation The stockholders' equity accounts of Scott Corporation at January 1 follow: Common stock, $5 par value, 350,000 shares authorized; 150,000 shares issued and outstanding $750,000 Paid-in capital in excess of par value (common stock) Retained earnings 600,000 346,000 During the year, the following transactions occurred: Jan. 5 Issued 10,000 shares of common stock for $15 cash per share. 18 Purchased 4,000 shares of common stock as treasury stock at $17 cash per share. Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $21 per share. July 17 Sold 500 shares of the remaining treasury stock for $16 per share. Oct. 1 Issued 5,000 shares of eight percent, $25 par value preferred stock for $38 cash per share. These are the first preferred shares issued out of 50,000 authorized shares. Dec. 31 Closed the net income of $74,500 to the Retained Earnings account. Required Prepare journal entries to record the foregoing transactions and post to T-accounts. 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. Prepare the December 31 stockholders' equity section of the balance sheet.