The partners who own LeClerc \& Duvalle wished to avoid the unlimited personal liability of the partnership form of business, so they incorporated the partnership as L\&D Exploration, Inc. The charter from the state of Louisiana authorizes the corporation to issue 10,000 shares of 6-percent, \(\$ 100\)-par preferred stock and 250,000 shaies of no-par common stock with a stated value of \(\$ 5\) per share. In its first month, L\&D Exploration completed the following transactions:

Dec. 1 Paid incorporation taxes of \(\$ 1,500\) and a charter fee of \(\$ 2,000\) to the state of Louisiana and paid legal fees of \(\$ 1,900\) to organize as a corporation.

3 Issued 500 shares of common stock to the promoter for assistance with issuance of the common stock. The promotional fee was \(\$ 5,000\).

3 Issued 5,100 shares of common stock to LeClerc and 3,800 shares to Duvalle in return for the net assets of the partnership. LeClerc's capital balance on the partnership books was \(\$ 51,000\), and Duvalle's capital balance was \(\$ 38,000\).

7 Received land valued at \(\$ 160,000\) as a donation from the city of Lafayette.

12 Issued 1,000 shares of preferred stock to acquire a patent with a market value of \(\$ 110,000\).

22 Issued 1,500 shares of common stock for \(\$ 10\) cash per share.

\section*{Required}

1. Record the transactions in the general journal.

2. Prepare the stockholders' equity section of the L\&D Exploration, Inc., balance sheet at December 31. The ending balance of Retained Earnings is \(\$ 91,300\).