Choctaw Co. completed the following transactions in 2018, the first year of operation:
1. Issued 20,000 shares of $10 par for $10 per share.
2. Issued 3,000 shares of $20 stated value preferred stock for $20 per share.
3. Purchased 1,000 shares of as treasury stock for $12 per share.
4. Declared a $2,000 cash on preferred stock.
5. Sold 500 shares of treasury stock for $14 per share.
6. Paid $2,000 cash for the preferred declared in Event 4.
7. Earned cash revenues of $78,000 and incurred cash expenses of $41,000.
8. Appropriated $8,000 of retained earnings.
Required
a. Organize the transaction in accounts under an accounting equation.
b. Prepare the stockholders’ equity section of the as of December 31, 2018.
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