QUESTION 1 ANSWER SHEET QUESTION 2 ANSWER INDIRECT ANSWER DIRECT Feb. Fast Cars Ine, was authorized to isste 50,000 $1.50 preferred shares and 300,000 common shares. During 2020. its first year of operations the following selected transactions occurred: Jan. 1 5.500 of the preferred shares were issued at $13.00 per share: cash. 5 15.000 of the common shares were issued for a total of $131.000 cash. 20 3,000 of the common shares were given to the organizers of the corporation regarding their efforts. The shares were valued at a total of $29,300. May 15 12.500 preferred shares and 22.500 common shares were issued at $13.10 and $9.50 respectively, cash. Dec. 31 The Income Summary account was closed; it showed a debit balance of $334.000. December 31 is Fast Car's year-end. Mar. Required a. Journalize the above transactions. b. Prepare the equity section of Fast Car's balance sheet at December 31, 2020 D H K L M N o Q Jan. Fast Cars Inc. was authorized to issue 50,000 $1.50 preferred shares and 300,000 common shares. During 2020. its first year of operations, the following selected transactions occurred: 15.500 of the preferred shares were issued at $13.00 per share, cash. Feb. $15.000 of the common shares were issued for a total of $131,000 cash. 20 3.000 of the common shares were given to the organizers of the corporation regarding their efforts. The shares were valued at a total of $29.300 May 15 12.500 preferred shares and 22.500 common shares were issued at $13.10 and $9.50 respectively, cash. Dec. 31 The Income Summary account was closed; it showed a debit balance of $334.000. December 31 is Fast Car's year-end. Mar. Required a. Journalize the above transactions. b. Prepare the equity section of Fast Car's balance sheet at December 31, 2020