The charter of Magnolia Corporation authorizes the issuance of 800 shares of preferred stock and

2,500 shares of common stock. During a two-month period,

Magnolia completed these stock-issuance transactions:

Mar. 23 Issued 240 shares of $4 par value common stock for cash of $17 per share.

Apr. 12 Received inventory with a market value of $28,000 and equipment with a market value

of $18,000 for 350 shares of the $4 par value common stock.

Apr.17 Issued 800 shares of 5% , $40 par value preferred stock for $40 per share.

Requirements:

1. Record the transactions in the general journal.

2. Prepare the stockholders' equity section of the Magnolia balance sheet as of April 30 , 2018 , for the transactions given in this exercise. Retained Earnings has a balance of $80,000 at April 30 , 2018

Requirement 1. Record the transactions in the general journal. (Record debits first, then credits. Select the expla Mar. 23: Issued 240 shares of $4 par value common stock for cash of $17 per share. Date Accounts and Explanation Debit Credit Mar. 23