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

During the year, the following transactions occurred:
Jan. 10 Issued 35,000 shares of common stock for \(\$ 18\) cash per share.
23 Purchased 10,000 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 3,500 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

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