the following is the stockholders' equity of clipper corporation at January 1:

8% preferred stock, $40 par value, 10,000 shares authorized; 7,000 shares issued and outstanding - $280,000

Common stock, $20 par value, 50,000 shares authorized; 25,000 shares issued and outstanding - $500,000

paid-in capital isn excess of par value - prefered stock - $70,000

Paid-in capital in excess of par value - common stock - $385,000

Retained Earnings - $238,000

Total SE: $1,473,000

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The following transactions, among others, occured during the year

Jan. 15. issued 2,000 shares of preferred stock for $62 cash per share.

Jan. 20. Issued 4,000 shares of common stock at $36 cash per share.

Jan. 31. Converted $20,000 face value of convertible bonds payable (the book value of the bonds is $18,500) to common stock. Each $1,000 bond converted to 25 shares of common stock.

May. 18. Announced a 2-for-1 common stock split, reducing the par value of the common stock to $10 per share. The authorization was increased to 100,000 shares.

June 1. Acquired equiptment with a fair market value of $40,000 in exchange for 2,000 shares of common stock

Sept. 1 Purchased $3,500 shares of common stock as treasury stock at $18 cash per share.

Oct. 12. Sold 900 treasury shares at $21 per share

Dec. 22. Issued 600 shares of preferred stock for $59 cash per share

Dec. 28. Sold 1,100 of the remaining treasury shares at $16 per share.

Dec. 31. Closed net income of $135,000 to the retained earnings account.

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A. Set up T-accounts for the stockholders' equity accounts as of the beginning of the year and enter the january 1 balances.

B. Prepair journal Enteries for the given transactions and post them to the T-accounts (Set up any additional T-accounts needed). Do not prepare the journal entery for Dec. 31 transaction, but post the appropriate amount to the retained earnings T-account. Determine the ending balances for the stockholders' equity accounts.

C. Prepare the stockholders' Equity section of the balances sheet at December 31.