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

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

a. Sold and issued 1,500 shares of common stock at $17 cash per share (at year-end).

b. Determined net income, $50,000.
C. Declared and paid a cash dividend of $2 per share on the beginning shares outstanding.
Required: 1. Prepare the stockholders' equity section of the balance sheet at December 3 1 . 2004. 2. Give the journal entry to record the sale and issuance of the 1 ,500 shares of common stock.

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POTAMIA CORPORATION Balance Sheet At December 31, 2003 Stockholders' Equity Common stock (par $10; 9,500 shares) Additional paid-in capital $ 95,000 28,500 Retained earnings-Ending balance 70,000 Total stockholders' equity $193,500