Choctaw Company completed the following transactions in Year 1, the first year of operation:

1. Issued 34,000 shares of $10 par common stock for $10 per share.
2. Issued 4,400 shares of $20 stated value preferred stock for $20 per share.
3. Purchased 2,400 shares of common stock as treasury stock for $12 per share.
4. Declared a $3,400 cash dividend on preferred stock.
5. Sold 1,500 shares of treasury stock for $14 per share.
6. Paid $3,400 cash for the preferred dividend declared in Event 4.
7. Earned cash revenues of $106,000 and incurred cash expenses of $55,000.
8. Closed revenue, expense, and dividend accounts to the retained earnings account.
9. Appropriated $9,400 of retained earnings.

Required a-1. Prepare journal entries to record these transactions. a-2. Post the entries to T-accounts. b. Prepare a balance sheet as of December 31, Year 1.