Arnold Corporation has been authorized to issue 40,000 shares of $100 par value, 8%, noncumulative preferred stock and 2,000,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2011, the ledger contained the following balances pertaining to stockholders’ equity.

                     Preferred Stock                                                                         $240,000

                     Paid-in Capital in Excess of Par Value-Preferred                         56,000

                     Common Stock                                                                         2,000,000

                     Paid-in Capital in Excess of Stated Value-Common                5,700,000

                     Treasury Stock-Common (1,000 shares)                                      22,000

                     Paid-in Capital from Treasury Stock                                               3,000

                     Retained Earnings                                                                      560,000

 The preferred stock was issued for land having a fair market value of $296,000. All common stock issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury at a per share cost of $22. In December, 500 shares of treasury stock were sold for $28 per share. No dividends were declared in 2011.

 Instructions

(a) Prepare the journal entries for the:

     (1) Issuance of preferred stock for land.

     (2) Issuance of common stock for cash.

     (3) Purchase of common treasury stock for cash.

     (4) Sale of treasury stock for cash.

(b) Prepare the stockholders’ equity section at December 31, 2011.