At the end of the 2010 annual reporting period, Zephyr Industries balance sheet showed the following: ZEPHYR

Question:

At the end of the 2010 annual reporting period, Zephyr Industries’ showed the following:
ZEPHYR INDUSTRIES
Balance Sheet
At December 31, 2010
Stockholders’ Equity
(par $15; 7,000 shares) ......... $105,000
Additional paid-in capital ............. 9,000
Retained earnings—Ending balance ......... 48,000
Total stockholders’ equity ............. $162,000
During 2011, the following selected transactions (summarized) were completed:
a. Sold and issued 1,500 shares of common stock at $24 cash per share (at year-end).
b. Determined net income, $46,000.
c. Declared and paid a cash of $1 per share on the beginning shares outstanding.

Required:
1. Prepare the stockholders’ equity section of the at December 31, 2011.
2. Give the journal entry to record the sale and issuance of the 1,500 shares of common stock.

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