The partners who own Bassett Furniture Co. wished to avoid the unlimited personal liability of the partnership

Question:

The partners who own Bassett Furniture Co. wished to avoid the unlimited personal liability of the form of business, so they incorporated as BFC Inc. The articles of incorporation from the province of Manitoba authorize the to issue 10,000 $6 preferred shares and 250,000 common shares. In its first month, BFC completed the following transactions:
2014
Jan. 3 Issued 1,000 common shares to the promoter for assistance with issuance of the common shares. The promotional fee was $10,000. Debit Organization Expense.
6 Issued 5,000 common shares to Jo Bassett, and 3,800 shares to Mel Bassett in return for cash equal to the market price of $11 per share. (The Bassetts were partners in Bassett Furniture Co.)
12 Issued 1,000 preferred shares to acquire a patent with a fair value of $110,000.
22 Issued 1,500 common shares for $12 cash per share.
Requirements
1. Record the transactions in the journal.
2. Prepare the shareholders' equity section of the BFC Inc. at January 31. The ending balance of Retained Earnings is $89,000.
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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...