3. Alexander Inc. was organized and authorized to issue 5,000 shares of $100 par value, 7% percent preferred stock and 50,000 shares of $8 par value common stock on July 1, 2013.

July 1 Issued 10,000 shares of common stock at $11 per share

July 1 Issued 300 shares of common stock at $11 per share for services rendered in connection with the organization of the company

July2 Issued 1,000 shares of preferred stock at par value for cash

July 10 Issued 3,000 shares of common stock for land on which the asking price was $75,000. Market value of the stock was $10. Management wishes to record the land at full market value of the stock.

Aug 10 Declared a cash dividend for one month on the outstanding preferred stock and $0.02 per share on common stock outstanding, payable on Aug 22 to stockholders of record on Aug 12.

Aug 12 Date of record for cash dividends

Aug 22 Paid cash dividends

5. Prepare a stockholders equity section of the balance sheet September 30, 2013using the information from problem number 3. In addition to that information, add another journal entry. The company purchased 1,500 of their own shares of common stock for $15 a share. The retained earnings account had a balance of $ 10,500.