Account for stock transactions. (LO 1)

Simba Corporation was started on July 1, 2006. The company is authorized to issue 100,000 shares of \(5 \%, \$ 100\) par value preferred stock and \(1,800,000\) shares of common stock with a par value of \(\$ 2\) per share. The following stock transactions took place during the fiscal year ended June 30, 2007.

Issued 40,000 shares of common stock for cash at \(\$ 23.50\) per share Issued 10,000 shares of preferred stock for cash at \(\$ 101\) per share Issued 40,000 shares of common stock for cash at \(\$ 24.80\) per share Issued 7,000 shares of preferred stock for cash at \(\$ 102\) per share Issued 25,000 shares of common stock for cash at \(\$ 25\) per share

\section*{Required}

a. Show each transaction in the accounting equation.

b. Prepare the contributed capital portion of the shareholders' equity section at June \(30,2007\).