Account for stock transactions. (LO 1)

Restoration Corporation was started on January 1, 2007. The company is authorized to issue 30,000 shares of \(6 \%, \$ 100\) par value preferred stock and 800,000 shares of common stock with a par value of \(\$ 1\) per share. The following stock transactions took place during 2007.

Jan. 3 Issued 10,000 shares of common stock for cash at \(\$ 4\) per share April 1 Issued 5,000 shares of preferred stock for cash at \(\$ 105\) per share June 1 Issued 40,000 shares of common stock for cash at \(\$ 4.50\) per share Sept. 1 Issued 1,000 shares of preferred stock for cash at \(\$ 102\) per share Dec. 1 Issued 15,000 shares of common stock for cash at \(\$ 5\) per share

\section*{Required}

a. Show each transaction in the accounting equation.

b. Prepare the contributed capital portion of the stockholders' equity section of the balance sheet at December 31, 2007.