ABC Corporation's charter authorized 120,000 shares of common stock, par $10. During the first year, 25,000 shares were sold and issued at $18 per share; in addition, 800 shares were subscribed for at the same price. One half of the subscription price was collected during the year. At the end of the first year, reported net income was $22,000 and cash dividends of $6,000 were declared and paid. At year-end, liabilities amounted to $25,000. On the last day of the year, 100 shares of stock were purchased from a disgruntled stockholder at $22 per share (assume the cost method).

a) At year end, what is the total amount of the company's total stockholders' equity?

b) Record the following transactions which occurred during the following year.

(1) 55 treasury shares were sold for $27 each.

(2) 45 the remaining treasury shares were sold for $15 each.

c) Record the following transactions which occurred during the following year.

A subscriber to 50 shares defaulted. The subscriber guaranteed the subscription price. The company sold the stock to another investor for $16 per share.