Sunshine Bakery, Inc. has been authorized to issue 300,000 shares of $8 par value common stock and 3,000 shares of 14 percent, cumulative, preferred stock with a par value of $12.

Prepare the entries for the following transactions that all took place in June 2012:

150,000 shares of common stock are issued for cash at $25 per share.

1,500 shares of preferred stock are issued for cash at $18 per share.

Shares of common stock are issued in exchange for legal services received in the incorporation process. The fair market value of the legal services is $18,000.

Prepare the paid-in capital section of Sunshine’s balance sheet as of June 30, 2012