Partners Meeks and Olsen wish to avoid the unlimited personal liability of the partnership form of business, so they are incorporating the company as M & O Services, Inc. The charter from the state of Texas authorizes the corporation to issue 70,000 shares of 2 percent, $100 par preferred stock and 230,000 shares of no-par common stock. In its first month, M & O Services, Inc., completed the following transactions: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Record the transactions in the journal. (Record debits first, then credits. Exclude explanations from any journal entries.) Jan 3: Issued 5,900 shares of common stock to Meeks and 3,400 shares to Olsen, both for cash of $15 per share. (Prepare a single journal entry for the issuance to both individuals.) Journal Entry Date Jan 3 Accounts Debit Credit More info Jan 12: Issued 1,100 shares of preferred stock to acquire a patent with a market value of $110,000. Date Jan 12 Journal Entry Accounts Debit Credit Jan 3 Issued 5,900 shares of common stock to Meeks and 3,400 shares to Olsen, both for cash of $15 per share. 12 Issued 1,100 shares of preferred stock to acquire a patent with a market value of $110,000. 22 Issued 1,000 shares of common stock to other investors for $16 cash per share. Print Done Jan 22: Issued 1,000 shares of common stock to other investors for $16 cash per share. Journal Entry Accounts Debit Credit Date Jan 22 22 Jan Date Journal Entry Accounts 3 Cash Jan 12: Issue Common stock Date Dividends Jan 12 Paid-in capital in excess of par-common Patent Preferred stock Jan 22: Issue Retained earnings Treasury stock Debit Credit a market value of $110,000. Debit Credit > cash per share. Requirement 2. Prepare the stockholders' equity section of the M & O Services, Inc.'s balance sheet at December 31. The ending balance of Retained earnings is $41,000. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.) Stockholders' Equity Paid-in capital: Total stockholders' equity Paid-in capital: Common stock, no-par, Less: Treasury stock Preferred stock, 2%, $100 par, Retained earnings Total paid-in capital Stockholders' Equity Requirement 2. Prepare the stockholders' equity section of the M & O Services, Inc.'s balance sheet at December 31. The ending balance of Retained earnings is $41,000. section of the balance sheet.) Paid-in capital: Stockholders' Equity shares at cost shares authorized, Total stockholders' equity shares issued and outstanding