Problem - Sampson Corporation was organized in 2017r to operate a financial consulting business. The charter authorized the issue of 12,000I common shares. During the first year, the following selected transactions were completed:

a. Sold and issued 5,700 common shares for cash at $25 per share.

b. Sold and issued 570 common shares for a piece of land to be used for a facilities site; construction began immediately. Assume that the market price per share was $25 on the date of issuance. Debit the land account.

c. Sold and issued 1,400 common shares for cash at $27 per share.

d. At yearend, the statement of earnings showed a loss of $8,000. Because a loss was incurred, no income tax expense was recorded.

Required:

1. Prepare the journal entry required for each of these transactions.

2. Prepare the shareholders' equity section as it should be reported on the statement of financial position at year-end, December 31, 2017.

3. Can Sampson pay dividends at year-end?