Stockholders Equity: Transactions and Balance Sheet Presentation

The stockholders equity accounts of Windham Corporation at January 1 appear below:

8 Percent preferred stock, $25 par value, 50,000 shares authorized;
6,800 shares issued and outstanding	$170,000
Common stock, $10 par value, 200,000 shares authorized;
50,000 shares issued and outstanding	500,000
Paid-in capital in excess of par valuePreferred stock	68,000
Paid-in capital in excess of par valueCommon stock	200,000
Retained earnings	270,000

During the year, the following transactions occurred:

Jan.	10	Issued 28,000 shares of common stock for $17 cash per share.
	23	Purchased 8,000 shares of common stock as treasury stock at $19 per share.
Mar.	14	Sold one-half of the treasury shares acquired January 23 for $21 per share.
July	15	Issued 3,200 shares of preferred stock in exchange for equipment with a fair market value of $128,000.
Nov.	15	Sold 1,000 of the treasury shares acquired January 23 for $24 per share.
Dec.	31	Closed the net income of $59,000 to the Retained Earnings account.

Required

Prepare journal entries to record the foregoing transactions and post to T-accounts. Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders equity accounts.

• Prepare the December 31 stockholders equity section of the balance sheet.