The charter for Zerron, Inc., authorizes the company to issue 500,000 shares of \($4,\) no-par preferred stock and 700,000 shares of common stock with \($1\) par value. During its start-up phase, Zerron, Inc., completed the following transactions:

Requirements 1. Record the transactions in the journal.
2. Prepare the stockholders’ equity section of the Zerron’s balance sheet at December 31,2010. Assume that the company earned net income of \($37,000\) during this period.

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2010 Jul 6 Issued 575 shares of common stock to the promoters who orginized the corporation, receiving cash of $17,250. 12 Issued 650 shares of preferred stock for cash of $23,000. 14 Issued 1,200 shares of common stock in exchange for land valued at $19,000.