Icon Corporation was organized during 2010. At the end of 2011, the equity section of its balance sheet appeared as follows:

Contributed capital:

Preferred stock (6%, $20 par, 10,000 shares authorized,

5,000 shares issued and outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$100,000

Common stock ($10 par, 50,000 shares authorized,

11,000 shares issued, 10,000 outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000

Paid-in capital in excess of par, preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000

Total contributed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $230,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000

Total contributed capital plus retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . $330,000

Less treasury stock (1,000 shares of common at cost) . . . . . . . . . . . . . . . . . . . . . . . . (12,000)

Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $318,000

During 2012, the following stockholders’ equity transactions occurred (in chronological sequence):

a. Issued 500 shares of common stock at $13 per share.

b. Reissued 500 shares of treasury stock at $13 per share.

c. Issued 1,000 shares of preferred stock at $25 per share.

d. Reissued 500 shares of treasury stock at $10 per share.

e. Declared a dividend large enough to meet the current-dividend preference of the preferred stock and to pay the common stockholders $2 per share. Dividends are recorded directly in the retained earnings account.

f. Closed net income of $65,000 to Retained Earnings. Revenues were $400,000; expenses were $335,000.

Required:

1. Journalize the transactions.

2. Prepare the stockholders’ equity section of the balance sheet at December 31, 2012.