Reference no: EM133165205

Question - Choctaw Co. completed the following transactions in Year 1, the first year of operation.

1. Issued 39,000 shares of $10 par common stock for $10 per share.

2. Issued 4,900 shares of $20 stated value preferred stock for $20 per share.

3. Purchased 2,900 shares of common stock as treasury stock for $12 per share.

4. Declared a $3,900 cash dividend on preferred stock.

5. Sold 2,000 shares of treasury stock for $14 per share.

6. Paid $3,900 cash for the preferred dividend declared in Event 4.

7. Earned cash revenues of $116,000 and incurred cash expenses of $60,000.

8. Appropriated $9,900 of retained earnings.

Required -

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

b. Prepare a balance sheet as of December 31, Year 1.