PrestonSporting Goods is authorized to issue 14,000shares of common stock. During a two-month period, Prestoncompleted these stock-issuance transactions: Requirements

1.	Journalize the transactions.
2.	Prepare the stockholders' equity section of Preston

Sporting Goods' balance sheet for the transactions given in this exercise. Retained Earnings has a balance of $ 48,000

1. Journalize the transactions.Begin by journalize the transaction on May

23. (Record debits first, then credits

23

Issued 1,000 shares of $3.50 par common stock for cash of $16.00 per share.

June

12

Received inventory with a market value of $18,000 and equipment with market

value of $38,000 for 3,500 shares of the $3.50 par common stock.