Issuance of stock (L.O. 1, 4, 5) Ventures, Inc., was formed on January 1 to invest in artwork. The company is authorized to issue 10,000 shares of $1 par-value common stock and 1,000 shares of 10%, $50 par value cumulative preferred stock. The following selected transactions occurred during the first quarter of operation: Jan. 3 Sold 5,000 shares of common stock to the corporation's founders at $30 per share. 19 Sold 600 shares of preferred stock at $58 per share. Feb. 4 Issued 100 common shares to an attorney for $3,300 of legal work related to corporate start-up and formation. 11 Issued 2,000 shares of common stock to Pierre LaTour in exchange for a painting appraised at $75,000. Instructions a. Prepare journal entries to record the company's transactions. b. Prepare the stockholders' equity section of the firm's March 31 balance sheet. The Retained Earnings balance on this date totals $41,000. c. The president of Ventures believes that presiden's view is incorrect