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The Stockholders$$ Equity section of the balance sheet of Willy Corporation on January $1,20$X$1,$ is shown below; selected transactions for the year follow:

Stockholders$$ Equity

Preferred Stock $(10\%$ cumulative, $$10$ par value, $200,000$ shares authorized$)$

Issued and Outstanding, $8,800$ Shares $ $88,000$

Paid$-$in Capital in Excess of Par Value $8,800$ $ $96,800$

Common Stock $($no$-$par value, $$50$ stated value, $280,000$ shares authorized$)$

Issued and Outstanding, $2,800$ Shares $140,000$

Paid$-$in Capital in Excess of Stated Value $5,600145,600$

Total Paid$-$in Capital $ $242,400$

Retained Earnings $138,000$

Total Stockholders$$ Equity $ $380,400$

DATE TRANSACTIONS

February $15$ Purchased $4,200$ shares of the outstanding preferred stock for $$46,200$ in cash. The stock is to be held as treasury stock. State law requires that an amount of retained earnings equal to the cost of treasury stock held must be appropriated. Record the purchase and the appropriation of retained earnings.

March $4$ Declared a $2-$for$-1$ stock split of common stock. Each shareholder will own twice as many shares as originally owned. Stated value is reduced to $$25$ per share. Date of record is March $15.$ Date of issue of new shares is April $1.$

April $1$ Issued new shares called for by split.

June $17$ Declared semiannual dividend of $5$ percent on preferred stock, to be paid on July $12$ to holders of record on June $30.$

July $12$ Paid cash dividend on preferred stock.

September $25$ Purchased $400$ shares of outstanding preferred stock at $$10$ per share to be held as treasury stock. Record appropriated retained earnings equal to cost of the treasury stock.

December $15$ Declared semiannual cash dividend of $5$ percent on preferred stock to be paid on January $12$ to holders of record on December $30.$

December $15$ Declared cash dividend of $$1\mathrm{.}20$ per share on common stock to be paid on January $12$ to holders of record on December $30.$

December $15$ Accepted title to a tract of land with an appraised value of $$158,000$ from the City of Greenville. The tract is to be used as a building site for the corporation$$s new factory.

December $31$ Had net income after taxes for the year of $$78,000.$ Give the entry to close the Income Summary account.

Required:

Open the stockholders$$ equity accounts in the general ledger and enter the beginning balances. In addition to the accounts listed, open the following accounts: Donated Capital$-$Account number $371,$ Treasury Stock$-$Preferred$-$Account number $372,$ Retained Earnings$-$Appropriated for Treasury Stock$-$Account number $382$

Record the transactions in general journal form.

Post the transactions to the stockholders$$ equity accounts.

Prepare the Stockholders$$ Equity section of the balance sheet.

Analyze:

If Willy Corporation had not repurchased preferred stock to place in treasury, what total stockholders$$ equity would be reported on December $31,20$X$1?$

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