Temte Corporation is authorized to issue 1,000,000 shares of no-par common stock and 250,000 shares of 6 percent, $25 par value, cumulative preferred stock. These events affected stockholders’ equity during the first year of operations:
1. 125,000 shares of common stock were sold for $20 per share.
2. 25,000 shares of preferred stock were sold for $40 per share.
3. A building with a fair market value of $280,000 was acquired for a cash payment of $112,000 and 7,000 shares of common stock.
4. 15,000 shares of common stock were issued for $270,000 cash.
5. A dividend of $.50 per share for common and $1.50 per share for preferred stock was declared.
A. Record the transactions described above.
B. Prepare the stockholders’ equity section of the balance sheet for December 31 assuming that Temte Corporation generated $615,000 of income.

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