Mulberry Sporting Goods is authorized to issue 18,000 shares of common stock . During a two-month period,

Question:

Mulberry Sporting Goods is authorized to issue 18,000 shares of . During a two-month period, Mulberry completed these stock-issuance transactions:
Apr 23 Issued 4,000 shares of $1.00 par for cash of $14.75 per share.
May 12 Received inventory with a market value of $14,000 and equipment with market value of $51,000 for 3,400 shares of the $1.00 par .

Requirements
1. Journalize the transactions.
2. Prepare the stockholders’ equity section of Mulberry Sporting Goods’ for the transactions given in this exercise. Retained Earnings has a balance of $53,900.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...