Citadel Sporting Goods is authorized to issue 5,000 preferred shares and 10,000 common shares. During a two-month

Question:

Citadel Sporting Goods is authorized to issue 5,000 preferred shares and 10,000 common shares. During a two-month period, Citadel completed these share-issuance transactions:
Sept. 23 Issued 1,000 common shares for cash of $16 per share.
Oct. 2 Issued 300 $4.50 preferred shares for $20,000 cash.
12 Received inventory valued at $15,000 and equipment with fair value of $43,000 for 4,000 common shares.
Requirement
Prepare the shareholders' equity section of the Citadel Sporting Goods for the transactions given in this exercise. Retained Earnings has a balance of $49,000. Journal entries are not required.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...