The stockholders' equity LOS, 6,8 accounts of Cooper Corporation at January 1 follow:

During the year, the following transactions occurred:

Jan. 5 Issued 20,000 shares of common stock for \(\$ 15\) cash per share.

18 Purchased 4,000 shares of common stock as treasury stock at \(\$ 14\) cash per share.

Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for \(\$ 17\) per share.

July 17 Sold 600 shares of the remaining treasury stock for \(\$ 12\) per share.

Oct. 1 Issued 5,000 shares of eight percent, \(\$ 25\) par value preferred stock for \(\$ 35\) cash per share. These are the first preferred shares issued out of 50,000 authorized shares.

Dec. 31 Closed the net income of \(\$ 170,000\) to the Retained Earnings account.

Required

a. Set up T-accounts for the stockholders' equity accounts as of the beginning of the year and enter the January 1 balances.

b. Prepare journal entries to record the foregoing transactions and post to T-accounts (set up any additional T-accounts needed). 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.

c. Prepare the December 31 stockholders' equity section of the balance sheet.

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Common stock, $1 par value, 350.000 shares authorized; 150,000 shares issued and outstanding.. $150,000 Paid-in capital in excess of par value.. 600,000 Retained earnings.... 366,000