HW Problem 11.1 - Sonic Company's shareholder's equity contained the following items on 12/31/X1. Common Stock - \$1.50 par value, 300,000 shares autherizad vurug U Sonre had the following transactions: 1/20 Issued 10,000 additional shares of preferred stock and received $350,000. 2/20 Declared dividends of $2 per share common stock with 3/15 record date and 3/31 payment date. 3/31 Paid the common dividends declared on February 20th. 4/15 Purchased 15,000 of its own common shares for $250,000. 6/30 Declared preferred dividends of 10% par value. Record date is 7/15 and payment date 7/31. 7/20 Issued 15,000 additional shares of preferred stock and received $500,000. 7/31 Paid the preferred dividends declared June 30th. 9/08 Purchased 8,000 of its own common shares for $144,000. 12/31 Closed $3 million of earnings from the income summary into retained earnings. a. Prepare journal entries for 202. b. Prepare a statement of retained earnings for the year ending 12/31/X2. c. Prepare the shareholder's equity section from Sonic Company's balance sheet 12/31/X2