Reporting Stockholders Equity on a Balance Sheet and Recording the Issuance of Stock At the end of

Question:

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

MESA INDUSTRIES Balance Sheet At December 31, 2011 Stockholders' Equity $105,000 Common stock (par $15; 7,000 shares) Ad

During 2012, the following selected transactions (summarized) were completed:
a. Sold and issued 1,500 shares of common stock at $26 cash per share (at year-end).
b. Determined net income, $46,000.
c. Declared and paid a cash dividend of $1 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 1,500 shares of commonstock.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...