#20) Military Sporting Goods is authorized to issue 12,000 shares of comon stock. During a two-month period, Miliraty completed these stocks issuance transactions.)

July 23 Issued 1,700 shares of $1.50 par common stock for cash fo $15.50 per share.

Aug 12 Received inventory with a market value of $20,000 and Equipment with market value of $46,000 for 3,000

shares of the $1.50 par common stock.

Requirements

1. Journalize the transaction

2. Prepare the stockholders' equity section of Military Sporting Goods' balance sheet for the transactions given

in this exercise. Retained Earnings has a balance of $47,000.

Requirement 1. Journalize the transactions

Begin by journalize the transaction on July23 (record debits first, then credits. Exclude explanations from any journal entries).

Journal Entry

Date Accounts Debits Credits

July 23 (Account Receivable, Cash, Common Stock, __________ ________

Equipment, INventory, Operating Expenses,

Paid-in Capital in Excess of Par-Common,

Paid-in Capital in excess of Par-Preferred.

Preferred Stock, Sales Revenue)

_____________________________________________ ___________ ______________

____________________________________________ __________ _______________

___________________________________________ ___________ _____________