Rainey Inc. was organized on June 5, 2011. It was authorized to issue 400,000 shares of \$10 par common stock and 50,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of \$25 per share. The following stock transactions pertain to Rainey Inc.:

1. Issued 20,000 shares of common stock for \(\$ 15\) per share.

2. Issued 10,000 shares of the class A preferred stock for \(\$ 30\) per share.

3. Issued 50,000 shares of common stock for \(\$ 18\) per share.
Required

a. Prepare general journal entries for these transactions.

b. Prepare the stockholders' equity section of the balance sheet immediately after these transactions.