Bread & Butter, Inc. is authorized to issue 120,000 shares of common stock and 7,000 shares of preferred stock.

During its first year, the business completed the following stock issuance transactions:

Requirements

1.	Journalize the transactions. Explanations are not required.
2.	Prepare the stockholders' equity section of Bread & Butter's balance sheet. The ending balance of retained earnings is a deficit of $43,000.

Requirement 1. Journalize the transactions. Explanations are not required. (Record debits first, then credits.)

Jan 19: Issued 12,000 shares of $2.00 par common stock for cash of $6.00 per share.

Journal Entry
Date		Accounts	Debit	Credit
Jan	19

Apr 3: Issued 400 shares of $1.00 no-par preferred stock for $54,000 cash.

Journal Entry
Date		Accounts	Debit	Credit
Apr	3

Apr 11: Received inventory valued at $16,000 and equipment with market value of $9,500 for

3,700 shares of the $2.00 par common stock.

Journal Entry
Date		Accounts	Debit	Credit
Apr	11

Requirement 2. Prepare the stockholders' equity section of

Bread & Butter's balance sheet. The ending balance of retained earnings is a deficit of $43,000.

(Enter the accounts in the proper order for the stockholders' equity section of the balance sheet. Use parentheses or a minus sign for a deficit.)

Stockholders' Equity
	Stockholders' equity:

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