The stockholders' equity section of Makoto Corporation's balance sheet at December 31, 2016, appears below:
Common stock, $10 par value, 400,000 shares authorized;
250,000 issued and outstanding$2,500,000
Paid-in capital in excess of par 1,200,000
Total paid-in capital3,700,000
Retained earnings 600,000
Total stockholders' equity$4,300,000
During 2017, the following stock transactions occurred:
Jan.18Issued 50,000 shares of common stock at $32 per share.
Aug.20Purchased 25,000 shares of Makoto Corporation's common stock at $26 per share to be held in the treasury.
Nov.5Reissued 9,000 shares of treasury stock for $28 per share.
(a)Prepare the journal entries to record the above stock transactions.
(b)Prepare the stockholders' equity section of the balance sheet for Makoto Corporation at December 31, 2017. Assume that net income for the year was $100,000 and that no dividends were declared.