Account for stock transactions.
Simba Corporation was started on July 1, 2006. The company is authorized to issue 100,000 shares of 5%, $100 par value preferred stock and 1,800,000 shares of common stock with a par value of $2 per share. The following stock transactions took place during the fiscal year ended June 30, 2007.
Issued 40,000 shares of common stock for cash at $23.50 per share Issued 10,000 shares of preferred stock for cash at $101 per share Issued 40,000 shares of common stock for cash at $24.80 per share Issued 7,000 shares of preferred stock for cash at $102 per share Issued 25,000 shares of common stock for cash at $25 per share
Required
a. Show each transaction in the accounting equation.
b. Prepare the contributed capital portion of the shareholders' equity section at June 30, 2007.