The following is the stockholders' equity of Pinkerton Corporation on October 1, 201X:

1. Journalize the transactions in general journal form.
2. Prepare the stockholders' equity section of the balance sheet using the legal capital approach as of December 31, 201X.
The working papers that accompany this text have accounts to update ledger balances. Be sure to put in the beginning balances.
201X
Oct. 3 Declared a $0.20 per share dividend on the common stock and a $1.20 per share dividend on the preferred. (The Dividends Payable account will record amounts for both common and preferred, although companies could set up Common Dividend Payable and Preferred Dividend Payable accounts.)
Nov. 15 Dividends were paid that were declared on October 3.
18 Purchased 420 shares of its own common stock at $18 per share.
25 Reissued 120 shares at $22 per share.
26 Declared a 10% stock dividend on common. Market value of stock is $44 per share.
Dec. 29 Distributed stock dividend declared on November 26.
30 Reissued 120 shares of treasury stock at $15 per share.
31 Closed the Income Summary account, which had net income of $82,000, to Retained Earnings.

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Paid-In Capital: Preferred 13.33% Stock, $9 par value, authorized 6,000 shares, 3,100 shares issued and outstanding Common Stock, $3 par value, authorized 22,000 shares, 12,000 shares issued and outstanding $27,900 36,000 Additional Paid-In Capital: Paid-In Capital in Excess of Par Value-Preferred Paid-In Capital in Excess of Par Value-Common Paid-In Capital in Excess of Par Value-Stock Dividend Total Additional Paid-In Capital 5,500 3,500 Total Paid-In Capital Retained Earnings 22,000 $85,900 180,000 Total Stockholders' Equity $265,900