Bread & Butter, Inc., is authorized to issue 120,000 shares of common stock and 7,000 shares of preferred stock. During its first year, the business completed the following stock issuance transactions:

Jan 19 Issued 12,000 shares of $2.00 par common stock for cash of $6.00 per share.

Apr 3 Issued 400 shares of $1.00 no-par preferred stock for $54,000 cash.

11 Received inventory valued at $16,000 and equipment with market value of $9,500 for 3,700 shares of the $2.00 par common stock.

Requirements

1. Journalize the transactions. Explanations are not required.

2. Prepare the stockholders equity section of Bread & Butters balance sheet. The ending balance of retained earnings is a deficit of $43,000.