Required information [The following information applies to the questions displayed below.]

Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1 par value.

During its first year, the following selected transactions were completed:

Issued 6,000 shares of common stock for cash at $20 per share.

Issued 2,000 shares of common stock for cash at $23 per share.

2.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.)

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 $100.

4. Incentive Corporation has $30,000 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?