(1) present the required journal entry or entries, (2) show all calculations, and (3) describe the impact of the journal entry (or entries) on the stockholders' equity section of the balance sheet.

Kodiak Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2018, its first year of operations: J 2 Issue 110,000 shares of common stock for $70 per share