31. (16 min.)

     (a)

     Jan. 18  Cash ..................................           1,000,000                               

                        Common Stock ........................                       400,000

                        Paid-in Capital in Excess of Par Value          600,000

                 (To record issuance of 40,000 shares of common stock)

    

     Aug. 20  Treasury Stock ........................       330,000

                          Cash ................................                             330,000          

                 (To record purchase of 15,000 shares of treasury stock at cost)

    

     (b)

     Stockholders' equity

       Paid-in capital

         Capital stock

           Common stock, $10 par value, 400,000

           shares authorized, 290,000 shares issued,

           and 280,000 shares outstanding                                    $2,900,000     

         Additional paid-in capital in excess of par value             1,800,000      

               Total paid-in capital                                                  4,700,000

       Retained earnings                                                                  750,000     

                                                            

      Total paid-in capital and retained earnings                         5,450,000

          Less: Treasury stock (15,000 shares)                               (330,000)    

         

             Total stockholders' equity                                          $5,120,000