Stockholders' Equity: Transactions and Balance Sheet Presentation Torey Corporation was organized on April 1. with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred: Apr. 1 issued 80,000 shares of common stock at 540 cash per share: issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at 3 531,000 8 issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000 20 Issued 6,000 shares of preferred stock for cash at $80 per share. Credit 0 Debit 3,200,000 $ O 0 400,000 2,800,000 Required 2. Prepare journal entries to record the above transactions General Journal Date Description Apr 01 Cash . Common Stock . Paid in Capitalin Excess of Par Value-Common Stock Issued shares of common stock Apr 03 Organization Costs . Common Stock Paid in Capital in Excess of Par Value Common Stock issued common stock for organization costs Apr 08 Equipment . Common Stock Paid in Capital in Excess of Par Value - Common Stock Issued common stock for equipment Apr 20 Cash Preferred Stock Paid in Capital in Excess of Par Value - Preferred Stock issued shares of preferred stock 31,000 0 0 10,000 21,000 0 55,000 15,000 40,000 0 480,000 0 0 300,000 180.000 0 2 b. Prepare the stockholders' equity section of the balance sheet at April 30. Assume that the net income for April is $60,000. Stockholders' Equity Paid in Capital Common Stock 5 0 Preferred Stock . 0$ 725,000 Additional Paid-in-Capital Pald-in Capital in Excess of Par value - Preferred Stock 0 Paid-in-Capital in Excess of Par value- Common Stock 0 3,041,000 Total Pald-in-Capital 3,766,000 Retained Earnings 60,000 Total Stockholders' Equity e $ 3,826,000 e Check