Question 22: Partners Otis and Ali wish to avoid the unlimited personal liability of the partnership form of business so they are incorporating the company as O & O Services Inc. The charter from the state of Texas authorizes the corporation to issue 40,000 shares of 3%, $200 par preferred stock and 240,000 shares of no par common stock. In it's first month, O & O Services Inc. completed the following transactions:

7. (cisk the leon to whow the transactionis) Jan 22: Issued 1,400 shares of common stock to other investors for $9 cash per share. siocknolden' erisuty andion of the bulance aheet? \begin{tabular}{|l|l|l|l|l|} \hline Pxidticapial & stockholdere' Equily \\ \hline \end{tabular} More info Jan 3 Issued 6,000 shares of common stock to Otis and 3,500 shares to Ollie. both for cash of $9 per share. 12 Issued 1,000 shares of preferred stock to acquire a patent with a market value of $200,000. 22 Issued 1.400 shares of common stock to other investors for $9 cash per share. Requirements 1. Record the transactions in the journal. 2. Prepare the stockholders' equity section of the O \& O Services, Inc.'s balance sheet at December 31. The ending balance of Retained earnings is $60,000