Midwest Corp. completed the following transactions in 2007, the first year of operation:

1. Issued 20,000 shares of \($10\) par common stock at par.

2. Issued 2,000 shares of \($30\) stated value preferred stock at \($32\) per share.

3. Purchased 500 shares of common stock as treasury stock for \($15\) per share.

4. Declared a 5 percent cash dividend on preferred stock.

5. Sold 300 shares of treasury stock for \($18\) per share.

6. Paid the cash dividend on preferred stock that was declared in Event 4.

7. Earned revenue of \($75,000\) and incurred operating expenses of \($42,000\) .

8. Appropriated \($6,000\) of retained earnings.

Required:

a. Organize the transaction in accounts under an accounting equation.

b. Prepare the stockholders’ equity section of the balance sheet as of December 31, 2007.