3.	Prepare the stockholders equity section of the balance sheet at December 31. (Amounts to be deducted should be indicated by a minus sign.)
	TIP: Because this is the first year of operations, Retained Earnings has a zero balance at the beginning of the year.

2.

Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1

Record the issuance of 58,000 shares of common stock with a par value $10 for a price of $12 per share.

2

Record the purchase of 1,800 shares of previously issued common stock for a price of $15 per share.

3

Record the re-issuance of 900 shares of treasury stock previously purchased for a price of $15 per share and sold for $18 per share.