The following transactions relate to Sunlight Mountain Inc. Prepare journal entries for each transaction. Prepare the equity section of the balance sheet at each year-end, December 31. Assume 2015 was Sunlights first year of operations.

1. Sunlight issued 1,000 shares of $1 par value common stock for $70 per share on January 1, 2015.

DATE

ACCOUNT NAME

DEBIT

CREDIT

BALANCE SHEET

INCOME STMT

A

=

L

+

E

R

-

E

1/1/15

2. Sunlight issued 500 shares of no par value, $5, non-cumulative preferred stock for $50 per share on January 1, 2015.

DATE

ACCOUNT NAME

DEBIT

CREDIT

BALANCE SHEET

INCOME STMT

A

=

L

+

E

R

-

E

1/1/15

3. Sunlight reported net income of $2,000 during 2015 and paid no dividends. Prepare the companys equity section of the December 31, 2015, balance sheet.

Stockholders Equity:

Total Stockholder's Equity