Choctaw Co. completed the following transactions in Year 1, thefirst year of operation.

1. Issued 27,000 shares of $12 par common stock for $12 pershare.
2. Issued 3,700 shares of $20 stated value preferred stock for $20per share.
3. Purchased 1,700 shares of common stock as treasury stock for$14 per share.
4. Declared a $2,700 cash dividend on preferred stock.
5. Sold 1,100 shares of treasury stock for $16 per share.
6. Paid $2,700 cash for the preferred dividend declared in Event4.
7. Earned cash revenues of $92,000 and incurred cash expenses of$48,000.
8. Appropriated $8,700 of retained earnings.

Required

a. Organize the transaction in accounts underan accounting equation.
b. Prepare a balance sheet as of December 31, Year1.

• Required A

Organize the transaction in accounts under an accountingequation. (Enter any decreases to account balances with a minussign. Not all cells in the "Accounts Titles for Retained Earnings"column may require an input - leave cells blank if there is nocorresponding input needed.)

Choctaw Co. Accounting Equation Year 1 Event Assets = Liabilities Stockholders’ Equity Cash = Dividends Payable + Preferred Stock + Common Stock + Paid-in Capital in Excess of Par -Treasury Stock – Treasury Stock + Retained Earnings + Appropriated Retained Earnings Account Title for RetainedEarnings 1. = + + + – + + 2. = + + + – + + 3. = + + + – + + 4. = + + + – + + 5. = + + + – + + 6. = + + + – + + 7a. = + + + – + + 7b. = + + + – + + 8. = + + + – + + Totals 0 = 0 + 0 + 0 + 0 – 0 + 0 + 0

Required B

	CHOCTAW CO. Balance Sheet As of December 31,Year 1 Assets Total assets $0 Liabilities Stockholders’ equity Total Paid-In Capital $0 Retained Earnings    Total Retained Earnings 0 Total Stockholders’ Equity    0 Total Liabilities andStockholders’ Equity $0