Three people—Callas, Duncan, and Reeder—organized P.0.3,6 Freeze-it Cold Storage, Inc., with a charter providing for the following authorized capital:

b. 15,000 shares of common stock, $10 par value During its first year of operations, Freeze-it Cold Storage completed the following transactions:

Instructions 1. Record the above transactions in general journal form.
2. Post the entries to the following accounts: Preferred 9 Percent Stock, Premium on Preferred 9 Percent Stock, and Common Stock.
3. Prepare the Stockholders’ Equity section of the balance sheet as of December 31, the end of the first year of operations. Net income after taxes for the year was $43,140, and no dividends were declared during the year. As a result.
Retained Earnings has a credit balance of $43,140.
Check Figure Total Stockholders' Equity, $187,480

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June 6 Bought equipment from Reeder for $32,140. Reeder accepted 3,214 shares of common stock in exchange for the equipment. July 6 Bought land and building from Duncan. It was determined that the fair market value of the land was $15,900 and of the building, $48,750. There is an outstanding mortgage on the property of $28,500 held by Trent Savings Bank. The corporation assumed responsibility for paying the mortgage. Duncan accepted common stock at par for his equity. 8 Issued 60 shares of common stock to Callas for organizational ser- vices. The stock is selling at par. 5 Issued 450 shares of preferred 9 percent stock at $53 per share to investors for cash. 31 Issued 300 shares of preferred 9 percent stock at $52 per share to investors for cash.