Pryor Sales, Inc., is authorized to issue 190,000 shares of common stock and 10,000 shares of preferred

Question:

Pryor Sales, Inc., is authorized to issue 190,000 shares of and 10,000 shares of preferred stock. During its first year, the business completed the following stock issuance transactions:

Jul 19 Issued 12,000 shares of $4.00 par for cash of $12.00 per share.
Oct 3 Issued 600 shares of $3.00 no-par preferred stock for $62,000 cash.
11 Received inventory valued at $16,000 and equipment with market value of $8,500 for 3,600 shares of the $4.00 par .

Requirements
1. Journalize the transactions. Explanations are not required.
2. Prepare the stockholders’ equity section of Pryor Sales’ balance sheet. The ending balance of retained earnings is a deficit of $40,000.

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...