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Incentive Corporation was authorized to issue 1 2 , 0 0 0 shares of common stock, each with a $ 2 par value. During its

Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 par value. During its first year, the following selected transactions were completed:
a. Issued 5,500 shares of common stock for cash at $20 per share.
b. Issued 1,500 shares of common stock for cash at $23 per share.
2. Prepare the journal entry required for each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Journal entry worksheet
1
2
Record the issuance of 5,500 shares of common stock with a par value $2 for a price of $20 per share.
Note: Enter debits before credits.
\table[[Transaction,General Journal,Debit,Credit],[a,Cash,110,000,],[,Common Stock,,11,000],[,Additional Paid-In Capital, Common Stock,,99,000],[,,,],[,,,],[,,,]]
Record the issuance of 1,500 shares of common stock with a par value $2 for a price of $23 per share.
Note: Enter debits before credits.
\table[[Transaction,General Journal,Debit,Credit],[b,Cash,34,500,],[,Common Stock,,3,000],[,Additional Paid-In Capital, Common Stock,,31,500],[,,,],[,,,],[,,,]]
Prepare the stockholders' equity section as it should be reported on the year-end balance sheet. At year-end, the accounts reflected a profit of $100.
\table[[INCENTIVE CORPORATION],[Balance Sheet (Partial),],[At December 31,],[Stockholders' Equity],[Contributed Capital:,],[Common Stock,14,000],[Additional Paid-In Capital, Common Stock,130,500],[,144,500],[Total Contributed Capital,100],[Retained Earnings,],[,144,600],[Total Stockholders' Equity,]]
Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 par value. During its first year, the following selected transactions were completed:
a. Issued 5,500 shares of common stock for cash at $20 per share.
b. Issued 1,500 shares of commn stock for cash at $23 per share.
4. Incentive Corporation has $45,000 in the company's bank account. At year-end, the accounts reflected a profit of $100. What is the maximum amount of cash dividends the company can declare and distribute?
Maximum amount of cash dividends
$,100
Please confirm if answers are correct
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