Military Sporting Goods is authorized to issue 14,000 shares of common stock. During a?two-month period, Military completed these?stock-issuance transactions:

1.

Journalize the transactions.

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 $45,000.

Apr

23

Issued 1,000 shares of $3.50 par common stock for cash of $15.00 per share.

May

12

Received inventory with a market value of $12,000 and equipment with market

value of $45,000 for 3,200 shares of the $3.50 par common stock.

Requirement 1. Journalize the transactions.

Begin by journalize the transaction on

April 23. ?(Record debits?first, then credits. Exclude explanations from any journal?entries.)

Journal Entry

Date

Accounts

Debit

Credit

Apr

23

Cash

15,000

Common Stock

3,500

Paid-in Capital in Excess of Par - Common

11,500

?Next, journalize the transaction on

May 12.

Journal Entry

Date

Accounts

Debit

Credit

May

12

Inventory

12,000

Equipment

45,000

Common Stock

11,200

Paid-in Capital in Excess of Par - Common

45,800

Requirement 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 $45,000.

?(Enter the accounts in the proper order for the?stockholders' equity section of the balance?sheet.)

Balance Sheet (Partial)

Stockholders' Equity:

$

par,

shares

Total stockholders' equity