Response to the following problems:
1. Scarecrow, Inc., issues 50,000 shares of $2 par value common stock. The shares are sold for $25 per share.
Prepare the journal entry to record the issuance of the stock.
2. Tinman Corporation reports the following balances at the end of the current year: Common stock, $5 par, $50,000; Retained earnings, $120,000; Additional paid-in capital on common stock, $200,000; Income taxes payable, $9,800; and Accumulated other comprehensive income, $24,500.
Prepare the stockholders' equity section of Tinman Corporation's yearend balance sheet.