The articles of incorporation authorize Gingrich Solutions Ltd. to issue 100,000 $2.00 preferred shares and 250,000 common

Question:

The articles of incorporation authorize Gingrich Solutions Ltd. to issue 100,000 $2.00 preferred shares and 250,000 common shares. In its first year, Gingrich Solutions Ltd. completed the following selected transactions:
2014 Jan. 2 Paid incorporation costs of $2,500 and legal fees of $6,000 to organize as a corporation.
6 Issued 20,000 common shares for equipment with a market value of $175,000.
12 Issued 100 preferred shares to acquire software with a market value of $19,500.
22 Issued 5,000 common shares for $7.00 cash per share.
Required
1. Record the transactions in the general journal.
2. Prepare the shareholders' equity section of the Gingrich Solutions Ltd. at December 31, 2014. The ending Retained Earnings balance is $60,000.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...