Intermediate Accounting: P16-11 The Byrd Company's contributed Capital section

Intermediate Accounting

The Byrd Company's contributed Capital section of its January 1, 2010 balance sheet is as follows:
Preferred stock (6%, $50 par, 8,000 shares authorized, 3,400 shares issued and outstanding) 170,000
Common Stock ($10 stated value, 30,000 shares authorized, 12,000 shares issued and outstanding) 120,000
Preferred stock subscribed (800 shares subscribed at $54 per share) 40,000
Additional paid in capital on preferred stock 12,800
Additional paid in capital on common stock 72,000
Total contributed capital $414,800

During 2010, the company entered into the following transactions:
Jan 4. Established a compensatory share option plan for its key executives. The options west after a three year service period. The estimated fair value of the options expected to be exercised is $81,000.
Mar 5. Received the remaining $40 per share on the subscribed preferred stock and issued the shares.
Apr 23. Sold 300 shares of preferred stock at $55 per share.
May 4. Received a subscription down payment of $6 per share on 1,000 shares of common stock. The remaining $11 per share balance is due in 60 days.
July 2. Received the remaining balance on subscribed common stock and issued the shares.
Sept 21. Purchased building by paying $9,000 cash and issuing 800 shares of common stock and 450 shares of preferred stock. Common and preferred stock are currently for $19 and $57 per share respectively.
Oct 12. Reacquired 900 shares of common stock at $19.50 per share. The company uses the cost method to account for treasury stock.
Nov 15. Issued for $32,000 a contribution of 700 shares of common stock and 12% bonds with a face value of $20,000. The common stock is currently selling for $18 per share. No market value exists for the bonds.
Dec 14. Reissued the 900 shares of treasury stock at $20.50 per share
Dec 28. Distributed a $3.00 per share dividend to all outstanding preferred stock and a $1.50 per share dividend to all common stock outstanding on this date ( debit retained earnings and credit cash for each dividend0
Dec 31. Declared a two for one stock split on the common stock, reducing the stated value to $4 per share and increasing the authorized shares to 60,000.
1. Prepare journal entries to record the preceding transactions.
2. Prepare the contributed capital section of Byrd's Dec 31 2010 balance sheet
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