Pufferbat, Inc., is authorized to issue 400,000 shares of common stock and 10,000 shares of preferred stock. During its first year, the business completed the following stock issuance transactions:
Jan 6	Issued 8,000 shares of $1.00 par common stock for cash at $5.00 per share.
Apr 1	Issued 1,500 shares of $1.00 no-par preferred stock for $58,000 cash.
May 11	Received inventory valued at $15,000 and equipment with market value of $9,000 in exchange for 4,700 shares of the common stock.
Requirements
1.	Journalize the transactions. Explanations are not required.
2.	Prepare the stockholders equity section of Pufferbats balance sheet in a formal format. Note that the ending balance of retained earnings is given. It is a deficit of $6,000.
Req. 1	Journal Entries
Journal
DATE	ACCOUNT TITLES AND EXPLANATION						DEBIT	CREDIT
Req. 2	Stockholders Equity Section of Balance Sheet