Navy Sporting Goods is authorized to issue 17,000 shares of common stock. During a two-month period, Navy completed these stock-issuance transactions:

Data Table

June 23 Issued 1,200 shares of $4.00 par common stock for cash of $14.50 per share.

July 12 Received inventory with a market value of $18,000 and equipment with market value of $39,000 for 3,000 shares of the $4.00 par common stock.

Requirements

1. Journalize the transactions.
2. Prepare the stockholders' equity section of Navy Sporting Goods' balance sheet for the transactions given in this exercise. Retained Earnings has a balance of $ 41,000.