MI Air, Inc. engages in the following common stock transactions in 2017 for its $1 par value common stock. The firm earned $200 of net income during 2017, its first year of business.

January 1Issued 200 shares to an investor for $8 per share. December 1Purchased 40 of the shares sold to the investor for $10 per share, and placed them in the corporate treasury. December 10Issued 75 shares to another investor at $9 per share in order to secure additional financing for the firm. December 12Issued 30 of the treasury shares when the market price was $11 per share. December 15Declared a $.20 per share dividend. December 31Paid the dividend declared on December 15.

Requirements: (Use T accounts as necessary to track account balances)

Journalize the above transactions.

Present the effects of the stock transactions on MI Airs 2017 income statement,

Report stockholders equity on the companys December 31, 2017 balance sheet.