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Incentive Corporation was authorized to issue $12,000$ shares of common stock, each with a $$2$ par value. During its first year, the following selected transactions were completed:

a$.$ Issued $5,500$ shares of common stock for cash at $$20$ per share.

b$.$ Issued $1,500$ shares of common stock for cash at $$23$ per share.

$2.$ Prepare the journal entry required for each of these transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

$1$

$2$

Record the issuance of $5,500$ shares of common stock with a par value $$2$ for a price of $$20$ per share.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[$a$,$Cash,$110,000,],[,$Common Stock,,$11,000],[,$Additional Paid$-$In Capital, Common Stock,,$99,000],[,,,],[,,,],[,,,]]$

Record the issuance of $1,500$ shares of common stock with a par value $$2$ for a price of $$23$ per share.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[$b$,$Cash,$34,500,],[,$Common Stock,,$3,000],[,$Additional Paid$-$In Capital, Common Stock,,$31,500],[,,,],[,,,],[,,,]]$

Prepare the stockholders' equity section as it should be reported on the year$-$end balance sheet. At year$-$end, the accounts reflected a profit of $$100.$

$\backslash$table$[[$INCENTIVE CORPORATION$],[$Balance Sheet $($Partial$),],[$At December $31,],[$Stockholders$\text{'}$ Equity$],[$Contributed Capital:,$],[$Common Stock,$14,000],[$Additional Paid$-$In Capital, Common Stock,$130,500],[,144,500],[$Total Contributed Capital,$100],[$Retained Earnings,$],[,144,600],[$Total Stockholders' Equity,$]]$

Incentive Corporation was authorized to issue $12,000$ shares of common stock, each with a $$2$ par value. During its first year, the following selected transactions were completed:

a$.$ Issued $5,500$ shares of common stock for cash at $$20$ per share.

b$.$ Issued $1,500$ shares of comm$$n stock for cash at $$23$ per share.

$4.$ Incentive Corporation has $$45,000$ in the company's bank account. At year$-$end, the accounts reflected a profit of $$100.$ What is the maximum amount of cash dividends the company can declare and distribute?

Maximum amount of cash dividends

$$,100$

Please confirm if answers are correct

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