The charter for Zycor, Inc., authorizes the company to issue 100,000 shares of \($3,\) no-par preferred stock and 500,000 shares of common stock with \($1\) par value. During its start-up phase, Zycor, Inc., completed the following transactions:

Requirements 1. Record the transactions in the journal.
2. Prepare the stockholders’ equity section of Zycor’s balance sheet at December 31, 2010. Assume that the company earned net income of \($25,000\) during this period.

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2010 Aug 6 12 Issued 500 shares of common stock to the promoters who organized the corporation, receiving cash of $15,000. Issued 300 shares of preferred stock for cash of $20,000. 14 Issued 1,000 shares of common stock in exchange for land valued at $26,000.