Spector Company began the 20X3 calendar year with the following balances in its contributed capital accounts: Preferred stock, $100 par value; authorized, 1 million shares; issued and outstanding, 200,000 shares $20,000,000 Common stock, $5 par value; authorized, 5 million shares; issued and outstanding, 1,500,000 shares 7,500,000 Contributed capital in excess of par - preferred 2,000,000 Contributed capital in excess of par - common 10,000,000 During 20X3, the following stock transactions occurred: a. Issued 100,000 shares of common at $18 per share. Incurred stock issue costs of $80,000. b. Issued 20,000 shares of preferred for $2,400,000.

As a sweetener, Spector included one share of common stock with each five shares of preferred. The market prices of the common and preferred at the time of issuance were $15 and $120 per share, respectively. c. Received subscriptions for 200,000 shares of common at $18 per share.

Subscribers paid one-third of the subscription price as a down payment, with the remainder due in two equal installments in 30 and 60 days. (The installments are due in 20X4).

Required: 1. Prepare journal entries to record the stock transactions. 2. Prepare the contributed capital section of Spector Companys balance sheet at December 31, 20X3.