Worldwide Company obtained a charter from the state in January that authorized 200,000 shares of common stock, $10 par value. During the first year, the company earned $38,300 and declared no dividends; the following selected transactions occurred in the order given:

a) Issued 61,000 shares of the common stock at $11 cash per share.

b) Reacquired 2,100 shares at $14 cash per share from stockholders; the shares are now held in treasury.

c) Reissued 1,050 of the shares in transaction (b) two months later at $17 cash per share.

Required:

1. Indicate the account, amount, and direction of the effect on above transaction. (Enter any decreases to Assets, Liabilities and Stockholders' Equity with a minus sign.)

2. Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

• Record the issuance of 61,000 shares of common stock with a par value $10 for a price of $11 per share.
• Record the purchase of 2,100 shares of previously issued common stock for a price of $14 per share.
• Record the re-issuance of 1,050 shares of treasury stock previously purchased for a price of $14 per share and sold for $17 per share.

3. Prepare the stockholders equity section of the balance sheet at December 31. TIP: Because this is the first year of operations, Retained Earnings has a zero balance at the beginning of the year. (Amounts to be deducted should be indicated by a minus sign.)