Reporting Stockholders€™ Equity on a Balance Sheet and Recording the Issuance of Stock
At the end of the 2011 annual reporting period, Mesa Industries€™s balance sheet showed the following:

During 2012, the following selected transactions (summarized) were completed:
a. Sold and issued 1,500 shares of common stock at $26 cash per share (at year-end).
b. Determined net income, $46,000.
c. Declared and paid a cash dividend of $1 per share on the beginning shares outstanding.
Required:
1. Prepare the stockholders€™ equity section of the balance sheet at December 31, 2012.
2. Give the journal entry to record the sale and issuance of the 1,500 shares of commonstock.

MESA INDUSTRIES Balance Sheet At December 31, 2011 Stockholders' Equity $105,000 Common stock (par $15; 7,000 shares) Additional paid-in capital Retained earnings 9,000 48,000 Total stockholders' equity $162.000