The records of TMP Incorporated provide the following information on January 1, 2007:
Preferred stock, $50 par (5,000 shares authorized, issued, and outstanding) ... $250,000
Common stock, $10 par (20,000 shares authorized, 10,000 shares issued and outstanding) 100,000
Additional paid-in capital on preferred stock ................ 50,000
Additional paid-in capital on common stock ................. 80,000
Retained earnings ........................... 95,000
During 2007 the following transactions were recorded by TMP:
1. Reacquired 250 shares of preferred stock for $53 per share.
2. Reacquired 500 shares of common stock for $20 per share.
3. Sold 200 shares of the common stock acquired in (2) for $27 per share.
4. Sold 250 shares of preferred stock acquired in (1) for $59 per share.
5. Sold 100 shares of the common stock acquired in (2) for $18 per share.

Required
1. Prepare journal entries to record the stock transactions of TMP Incorporated, assuming it uses the cost method of accounting for treasury stock.
2. Prepare the stockholders’ equity section of the TMP balance sheet at December 31, 2007 (assume 2007 net income was $30,000 and dividends distributed were $10,000).