Q2. The article of incorporation authorize Gingrich Solution Ltd. To issue 100,000 $2.00 preferred shares and $ 250,000 common shares. In its first year, Gingrich Solutions Ltd. completed the following selected transactions:

2014

Jan.2 Paid incorporation costs of $2500 and legal fees of $6000 to organize as a corporation.

6 Issued 20,000 common shares for equipment with a market value of $175,000.

12 Issued 100 preferred shares to acquire software with a market value of $19,500.

22 Issued 5,000 common shares for $7.00 cash per share.

Required

1. Record the transactions in the general Journal.
2. Prepare the shareholders equity section of Gingrich Solutions Ltd. Balance sheet at Dec31, 2014. The ending retained Earnings balance is $60,000