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: Issued 6,900 shares of common stock for cash at $29 per share. Issued 2,900 shares of common stock for cash at $32 per share.

Question 1:Prepare the journal entry required for each of these transactions.

Question 2:Incentive Corporation has $39,000 in the companys 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?