Stockholders' Equity: Transactions and Balance Sheet Presentation Beaker Corporation was organized on July 1, with an authorization of 50,000 shares of $5 no-par value preferred stock ($5 is the annual dividend) and 100,000 shares of $10 par value common stock. During July, the following transactions affecting stockholders' equity occurred: 1 Issued 31,000 shares of common stock at $21 cash per share July 12 Issued 3,500 shares of common stock in exchange for equipment with a fair market value of $71,000. 15 Issued 5,000 shares of preferred stock for cash at $40 per share. Required Prepare journal entries to record the foregoing transactions. b. Prepare the stockholders' equity section of the balance sheet at July 31. The net income for July is $52,000. a