Tennis Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders equity during 2024, its first year of operations:

January 2	Issue 120,000 shares of common stock for $59 per share.
February 14	Issue 49,000 shares of preferred stock for $13 per share.
May 8	Purchase 12,000 shares of its own common stock for $49 per share.
May 31	Resell 6,000 shares of treasury stock for $54 per share.
December 1	Declare a cash dividend on its common stock of $0.55 per share and a $19,600 (4% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.)
December 30	Pay the cash dividends declared on December 1.

Required:

1. Record each of these transactions.

2. Prepare the stockholders equity section of the balance sheet as of December 31, 2024. Net income for the year was $479,000.