Zanobia Corporation is authorized to issue 15,000 shares of \(\$ 100\) par value, \(10 \%\) cumulative and nonparticipating preferred stock and 200,000 shares of no-par-value common stock. The board of directors established a \(\$ 10\) stated value for the nopar common stock. Zanobia Corporation then completed these transactions:

May 6 Accepted subscriptions to 95,000 shares of common stock at \(\$ 15\) per share. Down payments equal to \(30 \%\) of the subscription price accompanied each subscription.

May 10 Gave the corporation's promoters 2,500 shares of common stock for their services in getting the corporation organized. The board valued the services at \(\$ 45,000\).
June 5 Accepted subscriptions to 6,000 shares of preferred stock at \(\$ 110\) per share. The subscriptions were accompanied by \(50 \%\) down payments.
8 Collected the balance due on the May 6 common stock subscriptions and issued the stock.
29 Accepted subscriptions to 3,000 shares of preferred stock at \(\$ 105\) per share. The subscriptions were accompanied by \(50 \%\) down payments.
July 12 Collected the balance due on the June 5 preferred stock subscriptions and issued the stock.
\section*{Required}
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 July 12 .
\section*{Problem 12-5A Stockholders' equity transactions}
(L.O. \(2,3,4,5)\)