Reporting Stockholders€™ Equity on a Balance Sheet and Recording the Issuance of Stock
At the end of the 2011 annual reporting period, Barnard Corporation€™s balance sheet showed the following:

During 2012, the following selected transactions (summarized) were completed:
a. Sold and issued 1,000 shares of common stock at $25 cash per share (at year-end).
b. Determined net income, $43,000.
c. Declared and paid a cash dividend of $3 per share on the beginning shares outstanding.
Required:
1. Prepare the stockholders€™ equity section of the balance sheet at December 31, 2012.
2. Give the journal entry to record the sale and issuance of the 1,000 shares of commonstock.

BARNARD CORPORATION Balance Sheet At December 31, 2011 Stockholders' Equity Contributed capital Common stock (par $15; 6,000 shares) Paid-in capital $ 90,000 13,000 Total contributed capital Retained earnings 103,000 44,000 Total stockholders' equity $147,000