Sampson Corporation was organized in 2003 to operate a financial consulting business. The charter authorized the following capital stock: common stock, par value $8 per share, 12,000 shares. During the first year, the following selected transactions were completed:

a. Sold and issued 6,000 shares of common stock for cash at $20 per share.

b. Issued 600 shares of common stock for a piece of land to be used for a facilities site; construction began immediately. Assume that the stock was selling at $22 per share at the date of issuance. Debit Land.

c. Sold and issued 2,000 shares of common stock for cash at $23 per share.

d. At year-end, the accounts reflected a $7,000 loss. Because a loss was incurred, no income tax ex- pense was recorded. Required: 1. Give the journal entry required for each of these transactions. 2. Prepare the stockholders' equity section as it should be reported on the year-end balance sheet. 3. Can Sampson pay dividends at this time? Explain.