prepare genral entries

Wallings 12 - Saved L Review View Help Alternate Demo Problem Chapter 12 e Search Bonnie Enterprises Inc. received its approved articles of incorporation granting the right to issue an unlimited number common shares and 10,000 shares of $4, cumulative preferred shares. Selected transactions are presented below. Ken 2019 Feb. Mar 30 Exc.corporation ration's propres at si per Issued 45,000 common shares at $1 per share. Gave the corporation's promoters 30,000 common shares for their services in getting the corporation organized. The directors valued the services at $50,000. Exchanged 100,000 common shares for machinery with a fair value of $200,000. At the time of the acquisition, the shares were being traded for $2.35 per share. Closed the Income Summary account. A $25,000 loss was incurred. Dec. 2020 Jan. Dec. Issued 1,000 preferred shares at $75 per share. The board of directors declared a $4 dividend to preferred shares and $0.10 per share to outstanding common shares, payable on January 31 to the January 17 shareholders of record. Closed the Income Summary and Dividends accounts. A $69,000 net income was 2021 earned. Jan. 31 Paid the previously declared dividends. Required: 1. Prepare general journal entries to record the transactions. 2. Prepare the equity section of the balance sheet for December 31, 2020. sh