The following Stockholders' Equity accounts appear in the ledger of Fat Tire Bike Co. on January 1, the beginning of the reporting year. Preferred 2% Stock, $25 par (50,000 shares authorized, $1,000,000 40,000 shares issued) Common Stock $5 par (1,000,000 shares authorized, 3,500,000 700,000 shares issued) Additional Paid-in Capital: Preferred Stock 240,000 Common Stock 6,000,000 Retained Earnings 35,000,000 During the year, the corporation completed a number of transactions affecting the stockholdersequity. They are summarized as follows: 1. Purchased 50,000 shares of treasury common for $600,000. 2. Sold 30,000 shares of the treasury stock for $13 per share. 3. Issued 7,500 more shares of preferred stock for $30 per share. 4. Issued 100,000 more shares of common stock for $15 per share. 5. Sold 8,000 shares of the treasury stock for $11 per share. 6. Declared cash dividends of $.50 per share on preferred stock. 7. Declared cash dividends of $.30 per share on common stock. 8. Paid the cash dividends on both the preferred and common stock. Required: A. Prepare journal entries for the eight transactions. B. Prepare the Stockholders' Equity section of the balance sheet as of December 31 assuming the Fat Tire generated $500,000 of after-tax net income during the year and that the closing process has been completed