Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1 par value. During its first year, the following selected transactions were completed:

a.	Issued 6,800 shares of common stock for cash at $28 per share.
b.	Issued 2,800 shares of common stock for cash at $31 per share.

E11-2 Part 1 Required: 1. Complete the table below, indicating the account, amount, and direction of the effect for the above transactions. (Enter any decreases to account balances with a minus sign.) Stockholders' Equity Liabilities Assets . b. E11-2 Part 2 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.) View transaction list Journal entry worksheet 1 2 Record the issuance of 6,800 shares of common stock with a par value $1 for a price of $28 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry View general journal Clear entry E11-2 Part 3 3. Prepare the stockholders' equity section as it should be reported on the year-end balance sheet. At year- end, the accounts reflected Net income of $300 INCENTIVE CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: Total Contributed Capital 0 $ Total Stockholders' Equity 0 E11-2 Part 4 4. Incentive Corporation has $38,000 in the company's bank account. At year-end, the accounts reflected net income of $300. What is the maximum amount of cash dividends the company can declare and distribute? Maximum amount of cash dividends