P$4.$ Kraft Unlimited, Inc, was organized and authorized to issue $5,000$ snarer on s par value, $9$ percent preferred stock and $50,000$ shares of no par, $$5$ stated value common stock on July $1,2014.$ Stock$-$related transactions for Kraft Unlimited follow.

July $1$ Issued $10,000$ shares of common stock at $$11$ per share.

$1$ Issued $500$ shares of common stock at $$11$ per share for services rendered in connection with the organization of the company.

$2$ Issued $1,000$ shares it wircerred stock at par value for cash,

$10$ Issued $2,500$ shares of common stock for land on which the asking price was $$35,000.$ Market value of the stock was $$12.$ Management wishes to record the land at the market value of the stock.

Aug. $2$ Purchased $1,500$ shares of its common stock at $$13$ per share.

$10$ Declared a cash dividend for one month on the outstanding preferred stock and $50\mathrm{.}02$ per share on common stock outstanding, payable on August $22$ to stockholders of record on August $12.$

$12$ Date of record for cash dividends.

$22$ Paid cash dividends.

REQUIRED

Prepare journal entries to record these transactions.

Prepare the stockholders' equity section of Kraft's balance sheet as it would appear on August $31,2014.$ Net income for July was zero and August was $$11,500.$