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Clearpoint Inc. was organized on June 5, 2013. It was authorized to issue 300,000 shares of $10 par common stock and 50,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $40 per share. The following stock transactions pertain to Clear point Inc.:
1. Issued 10,000 shares of common stock for $12 per share.
2. Issued 3,000 shares of the class A preferred stock for $42 per share.
3. Issued 80,000 shares of common stock for $15 per share.
Required:
a. Prepare general journal entries for these transactions.
b. Prepare the stockholder's equity section of the balance sheet immediately after these transactions.
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