Reiss Inc. was organized on June 1, 2016. It was authorized to issue 500,000 shares of $10 par common stock and 100,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $50 per share. The following stock transactions pertain to Reiss Inc.:
1. Issued 40,000 shares of common stock for $16 per share.
2. Issued 20,000 shares of the class A preferred stock for $52 per share.
3. Issued 60,000 shares of common stock for $20 per share.
a. Prepare general journal entries for these transactions.
b. Prepare the stockholders’ equity section of the balance sheet immediately after these transactions.