Worldwide Company obtained a charter from the state in January that authorized 200,000 shares of common stock, $ 10 par value. During the first year, the company earned $ 38,200 and the following selected transactions occurred in the order given:
a. Issued 60,000 shares of the common stock at $ 12 cash per share.
b. Reacquired 2,000 shares at $ 15 cash per share from stockholders; the shares are now held in treasury.
c. Reissued 1,000 of the shares in transaction (b) two months later at $ 18 cash per share.
Required:
1. Indicate the effects of each transaction on the accounting equation.
2. Prepare journal entries to record each transaction.
3. Prepare the stockholders equity section of the balance sheet at December 31.