The Byrd Company's Contributed Capital section of its January 1, 2010 balance sheet is as follows: Preferred Stock (6%, $50 par, 8000 shares authorized, 3,400 shares issued and outstanding) $170,000 Common stock ($10 stated value, 30,000 shares authorized, 12,000 shares issued and outstanding) $120,000 Preferred stock subscribed (800 shares subscribed at $54 per share) $40000 Additional paid-in-capital on preferred stock $12800 Additional paid-in capital on common stock $72000 $414,800 During 2010, the company entered into the following transactions: Jan 4 Established a compensatory share option plan for its key executives. The options vest after three-year service period. The estimated fair value of the options expected to be exercised is $81000. Mar. 5 Received the remaining $40 per share on the subscribed preferred stock and issued the shares. Apr 23 Sold 300 shares of preferred stock at $55 per share. May 4 Received a subscription down payment of $6 per share on 1,000 shares of common stock. The remaining $11 per share balance is due in 60 days. June 7 Sold 600 shares of common stock at $17 per share. July 2 Received the remaining balance on subscribed common stock and issued the shares. Sept 21 Purchased building by paying $9000 cash and issuing 800 shares of common stock and 450 shares of preferred stock. Common and preferred stock are currently selling for $19 and $57 per share, respectively. Oct 12 Reacquired 900 shares of common stock at $19.50 per share. The company uses the cost method to account for treasury stock. Nov 15 Issued for $32000 a combination of 700 shares of common stock and 12% bonds with a face value of $20000. The common stock is currently selling for $18 per share. No market value exists for the bonds. Dec. 14 Reissued the 900 shares of treasury stock at $20.50 per share. Dec. 28 Distributed a $3 per share dividend to all outstanding preferred stock and a $1.50 per share dividend to all common stock outstanding on this date (debit Retained Earnings and credit Cash for each dividend). Dec. 31 Declared a two-for-one stock split on the common stock, reducing the stated value to $4 per share and increasing the authorized shares to 60000. Required: 1. Prepare journal entries to record the preceding transactions. 2. Prepare the Contributed Capital section of Byrds December 31, 2010 balance sheet.