Alter looking into debt financing through notes, mortgage, and bonds payable. Treo Top Company decides to rase additional capital for a planned business expansion. The comporly wil be able to acquire cash as well as land ad, acent to its current business location. Before the following transactions, the balance in Common Stock on January 1, 2027 was $750,000 and included 150,000 shares of common slock issued and outhtanding. (There was no Paid-in Capital in Excoss of Paf Common.) Troe Top Company had the following transactions in 2027 : (Click the iocn to viow the transactions) Read the requirements. Dec. 15. Declared tatal nash dividends of 51600 Dec. 15: Declared total cash dividends of $16,000. Dec. 20: Declared a 5% common stock dividend when the market value of the stock was $10.00 per share. Dec. 31: Paid the cash dividends. Dec. 31: Distributed the stock dividend Requirement 2. Calculate the balance in Retained Earnings on December 31, 2027. Assume the balance on January 1, 2027 was $5,000 and net income for the year wajp \$472,000. Complete the table below to calculate the balance in Retained Earnings on December 31, 2027. Requirement 3. Prepare the stockholders' equity section of the balance sheet as of Docember 31, 2027. There was no preterred stock issued prior to the 2027 transtctions Revieny the joumal entries from Fequirement 1 . Balance Sheet (Partial) December 31,2027 Paid-In Capital: Total Paid-In Capital Paid-In Capital: Total Paid-In Capital Total Stockholders' Equity 027 was $750,000 and included 150,000 shares of common stock issued and outstanding. (There was no mnany had the following transactions in 2027 . Requirements 1. Journalize the transactions. 2. Calculate the balance in Retained Earnings on December 31, 2027. Assume the balance on January 1, 2027 was $5,000 and net income for the year was $472,000. 3. Prepare the stockholders' equity section of the balance sheet as of December 31, 2027. There was no preferred stock issued prior to the 2027 transactions. More info 1. The income statement for 2025 included the following items: a. Net income, $462,000 b. Depreciation expense for the year, $40,140. c. Amortization on the bonds payable, $220. 2. There were no disposals of property, plant and equipment during the year. All acquisitions of PP\&E were for cash except the land, which was acquired by issuing preferred stock. 3. The company issued bonds payable with a face value of $1,100,000, receiving cash of $1,098,680. 4. The company distributed 6,000 shares of common stock in a stock dividend when the market value was $7.00 per share. All other dividends were paid in cash. 5. The common stock, except for the stock dividend, was issued for cash. 6. The cash receipt from the notes payable in 2025 is considered a financing activity because it does not relate to operations