Heuristic Solutions is authorized to issue an unlimited number of common shares and 50,000 preferred shares. During its first year (2019), the business completed the following share issuance transactions: July 19: Issued 50,000 common shares for cash of $5 per share. Oct 3: Issued 500, $1.50 preferred shares for $50,000 cash. Oct 11: Received inventory valued at $20,000 and equipment with fair value of $10,000 for 5000 common shares.

Journalize the transactions. Prepare the shareholders equity section of Heuristic Solutions balance sheet. The ending balance of Retained Earnings is a deficit of $95,000.