Witt Corporation receive its charter during January of this year. The charter authorized the following stock:

Preffred Stock: 10 Percent, $10 per value, 21,000 shares authorized

Common Stock: $8 per value, 50,000 shares authorized

During the current year the following transactions occurred in the order given:

a. Issued a total of 40,000 shares of the common stock at $12 cash per share

c. Sold 5,500 shares of the preferred stock at $16 cash per share

c. Sold 3,000 shares of the common stock at $15 cash per share and 1,000 shares the preferred stock at $26 cash per share

d. Net income for the year was $96,000

Required:

1. Prepare the stockholder's equity section of the balance sheet at the end of the year.
2. Prepare journal entries for transactions the listed.