Choctaw Co. completed the following transactions in 2016, the first year of operation:
1. Issued 20,000 shares of $10 par common stock for $10 per share.
2. Issued 3,000 shares of $20 stated value preferred stock for $20 per share.
3. Purchased 1,000 shares of common stock as treasury stock for $12 per share.
4. Declared a $2,000 cash dividend on preferred stock.
5. Sold 500 shares of treasury stock for $14 per share.
6. Paid $2,000 cash for the preferred dividend declared in Event 4.
7. Earned cash revenues of $78,000 and incurred cash expenses of $41,000.
8. Closed revenue, expense, and dividend accounts to the retained earnings account.
9. Appropriated $8,000 of retained earnings.
a. Prepare journal entries to record these transactions and post them to T-accounts.
b. Prepare a balance sheet as of December 31, 2016.