Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, $100 par preferred stock. The Contributed Capital section of its January 1, 2016, balance sheet is as follows: 8% preferred stock, $100 par $190,000 Common stock, no par 184,000 Additional paid-in capital on preferred stock 15,200 $389,200

Part A. A shareholder has raised the following questions: 1) What is the legal capital of the corporation? 2) At what average price per share has the preferred stock been issued? 3) How many shares of common stock have been issued (the common stock has been issued at an average price of $23 per share)?

Part B. The company engaged in the following transactions in 2016:

Mar. 2 Issued 350 shares of the 8% preferred stock at a price of $122 per share.

Apr. 5 Sold 900 shares of common stock for $34 per share. 13 Issued 400 shares of common stock in exchange for land. The stock is currently selling at $33 per share.

June 1 Reacquired 500 shares of common stock at $36 per share. The company uses the cost method to account for treasury stock. Oct. 19 Issued for $27,000 a combination of 500 shares of common stock and 100 shares of preferred stock. The common and preferred stock are currently selling for $35 and $125 per share, respectively.

Nov. 16 Reissued the 500 shares of treasury stock at $38 per share.

Dec. 31 Distributed an $8-per-share dividend on all preferred stock outstanding and a $2-per-share dividend on all common stock outstanding on this date (debit Retained Earnings and credit Cash for each dividend).

Required: 1. Answer the questions in Part A. 2. Prepare journal entries to record the transactions in Part B. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.