Leotine Corporation is authorized to issue 20,000 shares of \(\$ 100\) par value, \(10 \%\) cumulative and nonparticipating preferred stock and 500,000 shares of no-par-value common stock. The board of directors established a \(\$ 10\) stated value for the nopar common stock. Leotine Corporation then completed these transactions:

Aug. 6 Accepted subscriptions to 150,000 shares of common stock at \(\$ 20\) per share. Down payments equal to \(20 \%\) of the subscription price accompanied each subscription.

15 Gave the corporation's promoters 4,000 shares of common stock for their services in getting the corporation organized. The board valued the services at \(\$ 75,000\).

Sept. 4 Accepted subscriptions to 10,000 shares of preferred stock at \(\$ 130\) per share. The subscriptions were accompanied by \(40 \%\) down payments.

10 Collected the balance due on the August 6 common stock subscriptions and issued the stock.

30 Accepted subscriptions to 5,000 shares of preferred stock at \(\$ 120\) per share. The subscriptions were accompanied by \(40 \%\) down payments.

Oct. 9 Collected the balance due on the September 4 preferred stock subscriptions and issued the stock.

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1. Prepare general journal entries to record the transactions.

2. Prepare the stockholders' equity section of the corporation's balance sheet as of the close of business on October 9 .