ncentive 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 5,100 shares of common stock for cash at $21 per share.

b. Issued 1,100 shares of common stock for cash at $24 per share.

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.

	Assets		=	Liabilities		+	Stockholders Equity
a.
b.

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.)

1

Record the issuance of 5,100 shares of common stock with a par value $2 for a price of $21 per share.

2

Record the issuance of 1,100 shares of common stock with a par value $2 for a price of $24 per share

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 $200.

INCENTIVE CORPORATION
Balance Sheet (Partial)
At December 31
Stockholders Equity
Contributed Capital:
Total Contributed Capital	0
Total Stockholders Equity	$0

+

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4.	Incentive Corporation has $49,000 in the companys bank account. What is the maximum amount of cash dividends the company can declare and distribute? Maximum amount of cash dividends=