At the end of the 2003 annual reporting period. Mesa Corporation's balance sheet showed the following:

During 2004. the following selected transactions (summarized) were completed:

a. Sold and issued 1 .000 shares of common stock at $15 cash per share (at year-end).

b. Determined net income. $40,000.
c Declared and paid a cash dividend of $3 per share on the beginning shares outstanding.
Required: 1. Prepare the stockholders' equity section of the balance sheet at December 31. 2004. 2. Give the journal entry to record the sale and issuance of the 1 .000 shares of common stock.

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Stockholders' Equity Contributed capital MESA CORPORATION Balance Sheet At December 31, 2003 Common stock (par $10; 7,000 shares) Contributed capital in excess of par Total contributed capital Retained earnings Ending balance Total stockholders' equity $ 70.000 10.000 80.000 50.000 $130.000