The following is the stockholders? equity of Pierro Corporation on October 1, 201X:

1. Journalize the transactions in general journal form.

2. Prepare the stockholders? equity section of the balance sheet using the legal capital approach as of December 31, 201X.

The working papers that accompany this text have accounts to update ledger balances. Be sure to put in beginning balances.

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Paid-In Capital: Preferred Stock, $10 par value, authorized 6,100 shares, 3,800 shares issued and outstanding $ 38,000 Common Stock, $8 par value, authorized 20,000shares, 11,000 shares issued and outstanding 88,000 Additional Paid-In Capital: Paid-In Capital in Excess of Par Value–Preferred $8,000 Paid-In Capital in Excess of Par Value–Common 4,500 Paid-In Capital in Excess of Par Value–Stock Dividend 2,500 Total Additional Paid-In Capital 15,000 Total Paid-In Capital $141,000 Retained Earnings 220,000 Total Stockholders' Equity $361,000