Fast Fries,

Inc. is authorized to issue an unlimited number of common shares and 10,000 preferred shares. During its first year, the business completed the following share issuance transactions:

July	19	Issued 12,000 common shares for cash of $7.75 per share.
Oct	3	Issued 1,100 $1.50 preferred shares for $110,000 cash.
	11	Received inventory valued at $19,000 and equipment with fair value of $9,000 for 4,200 common shares.

Prepare the shareholders' equity section of balance sheet. The ending balance of Retained Earnings is a deficit of $50,000.

Fast Fries, Inc. is authorized to issue an unlimited number of common shares and 10,000 preferred shares. During its first year, the business completed the following share issuance transactions: July 19 Issued 12,000 common shares for cash of $7.75 per share. Oct Issued 1,100 $1.50 preferred shares for $110,000 cash. 11 Received inventory valued at $19,000 and equipment with fair value of $9,000 for 4,200 common shares. Required 1. Journalize the transactions. Explanations are not required. 2. Prepare the shareholders' equity section of Fast Fries' balance sheet. The ending balance of Retained Earnings is a deficit of $50,000. 9000 Equipment Common Shares Retained Earnings 23800 4200 Requirement 2. Prepare the shareholders' equity section of Fast Fries' balance sheet. The ending balance of Retained Earnings is a deficit of $50,000. (Use a minus sign or parenthesis for deficit amounts.) Shareholders' Equity Shareholders' equity: 1,100 shares issued 16,200 shares issued Common shares, unlimited number shares authorized Contributed surplus Preferred shares, $1.50, 10,000 shares authorized, Retained earnings (deficit) Cho Total shareholders' equity (50000) 181000 d then continue to the next question. Type here to search . WT 12:35 PM 11/21/2020 716