The following stockholders’ equity transactions of Williams Corporation occurred during its initial year of existence. J

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The following stockholders’ equity transactions of WilliamsCorporation occurred during its initial year of existence.
January 7—Articles of incorporation are filed with the state. The state authorized the issuance of 10,000 shares of $50 parvalue, 9% non-cumulative preferred stock and 200,000 shares of $10par value common stock.
January 28—40,000 shares of common stock are issued for $14 pershare
February 3—80,000 shares of common stock are issued in exchangefor land and buildings that have a fair market value of $250,000and $1,000,000, respectively. The stock traded at $15 pershare on that date on the over-the-counter market. (Hint:Since the stock is traded in the over-the-counter market, the valueof the stock should be used to assign value to the land andbuildings in proportion to their fair market values).
February 24—2,000 shares of common stock are issued to Dewey,Cheatem and Howe, Attorneys-at-Law, in payment for legal servicesrendered in connection with the incorporation of the company. The value of the legal services rendered was $32,000.
May 1—The company issues $1,500,000 of 7% bonds at 103, whichare due on April 30, 2024. Twenty detachable stock warrantsentitling the bondholder to purchase for $40 one share of thecompany’s common stock were attached to each $1,000 bond. Thebonds without the warrants would sell for 96. On May 1, thefair value of the company’s common stock was $25/share and the fairvalue of the warrants was $2/share.
September 12—The company issued 10,000 shares of its $50 parvalue, 9%, non-cumulative preferred stock at a price of$65/share.
October 15—Declared a 10% stock dividend on outstanding commonshares. The dividend will be distributed to stockholders ofrecord on October 31st. The fair market value of the shareson the date of the declaration is $20/share.
November 12—The Company repurchased 22,000 shares of its commonstock for $20/share.
December 1—The board of directors declared dividends to be paidto preferred and common stockholders of record of December 15th,payable on January 4th. Common stockholders will receive a dividendof $1/share and all preferred shareholders will receive their fulldividend for the year. (Hint: you will need to determine thenumber of outstanding shares of common and preferred stock as ofDecember 1st).
Requirements
1) Prepare the journal entries required to record theaforementioned transactions.
2) Based on the recording of the preceding transactions, answerthe following questions:
a) What is the balance of the common stockaccount at the end of the year?
b) What is the balance of the AdditionalPaid-in Capital Account—Common Stock at
the end of theyear?