Prepare the stickholders equity section as it should be

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Incentive Corporation was organized in 2009 to operate a financial consulting business. The charter authorized the following capital stock: common stock, par value $4 per share. 12,000 shares. During the first year, the following selected transactions were completed:

a - Issued 6,000 shares of common stock for cash at $20 per share.
b - Issued 2,000 shares of common stock for cash at $23 per share.

Required:
1 - show the effects of each transaction on the accounting equation.
2 - Give the journal entry required for each of these transactions.
3 - Prepare the stickholders' equity section as it should be reported on the 2009 year-end balance sheet. At year-end, the accounts reflected a profit of $100.
4 - Incentive Corporation has $30,000 in the company's bank account. Should the company declare cash dividends at this time? Explain.

Reference no: EM13599511

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