Zina Corporation was organized during 2011. At the end of 2011, the stockholders equity section of the

Question:

Zina Corporation was organized during 2011. At the end of 2011, the stockholders’ equity section of the balance sheet appeared as follows:

Contributed capital:

Preferred stock (10%, $30 par, 15,000 shares authorized,

10,000 shares issued and outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,000

Common stock ($25 par, 50,000 shares authorized,

25,000 issued, 20,000 outstanding). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000

Paid-in capital in excess of par, preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000

Total contributed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 840,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000

Total contributed capital plus retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,090,000

Less treasury stock (5,000 shares at cost of $20 per share) . . . . . . . . . . . . . . . . . . . . (100,000)

Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 990,000

During 2012, the following transactions occurred in the order given:

a. Issued 5,000 shares of common stock at $30 per share.

b. Reissued 2,000 shares of treasury stock at $21 per share.

c. Reissued 750 shares of treasury stock at $15 per share.

Required:

Record the transactions.

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