Shakes & Ice Cream, Inc. is authorized to issue an unlimited number of common shares and 10,000 preferred shares. During its first year, the business completed the following share issuance transactions: July 19 Issued 22,000 common shares for cash of $6.75 per share. Oct 3 Issued 1,200 $3.75 preferred shares for $120,000 cash. 11 Received inventory valued at $19,000 and equipment with fair value of $8,500 for 3,700 common shares. Required 1. Journalize the transactions. Explanations are not required. 2. Prepare the shareholders' equity section of Shakes & Ice Cream's balance sheet. The ending balance of Retained Earnings is a deficit of $49,000. Requirement 1. Journalize the transactions. Explanations are not required. (Record debits first, then credits. Explanations are not required.) Begin by journalizing the July 19 issue of common shares. Issued 22,000 common shares for cash of $6.75 per share. Date July 19 Journal Entry Accounts Debit Credit Next, journalize the October 3rd transaction. Issued 1,200 $3.75 preferred shares for $120,000 cash. Date Oct 3 Journal Entry Accounts Debit Credit Finally, journalzie the October 11th transaction. Received inventory valued at $19,000 and equipment with a fair value of $8,500 for 3,700 common shares. Date Oct 11 Journal Entry Accounts Debit Credit Requirement 2. Prepare the shareholders' equity section of Shakes & Ice Cream's balance sheet. The ending balance of Retained Earnings is deficit of $49,000. (Use a minus sign or parenthesis for deficit amounts.) Shareholders' Equity Shareholders' equity: Total shareholders' equity