Johnson Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. In itsfirst year, the company has the following stock transactions.

Jan 10Issued 500,000 shares of stock at $8 per share.

July 1Issued 100,000 shares of stock for Land. The land has an asking price of $850,000. The stock has market value of $8 per share.

Sept 1Purchased 10,000 shares of common stock for treasury at $ 9 per share.

Dec 1Sold 3,000 shares of treasury stock at $10 per share.

Dec 15Sold 2,000 shares of treasury stock at $8 per share.

Dec 25Sold 3,000 shares of treasury stock at $6 per share.

Instructions:

(a) Journalize the transactions.

(b) Prepare the stockholders' equity section assuming the company hadretained earningsof $300,000 at December 31.