(1) Shares are attractive to investors because shareholders are not liable for the corporation's actions and debts and because shares are easily transferred.

True or False

(2) Fast Cars Inc. was authorized to issue 50,000 $1.50 preferred shares and 300,000 common shares. During 2020, its first year of operations, the following selected transactions occurred:

Jan.	1	6,000 of the preferred shares were issued at $11.00 per share; cash.
Feb.	5	15,000 of the common shares were issued for a total of $136,000; cash.
Mar.	20	3,000 of the common shares were given to the organizers of the corporation regarding their efforts. The shares were valued at a total of $29,800.
May	15	13,000 preferred shares and 25,000 common shares were issued at $13.30 and $9.70 respectively; cash.
Dec.	31	The Income Summary account was closed; it showed a debit balance of $339,000. December 31 is Fast Cars year-end.

Required: a. Journalize the above transactions.

b. Prepare the equity section of Fast Cars balance sheet at December 31, 2020. (Amounts to be deducted should be indicated by a minus sign.)

c. Not available in Connect.