The charter of Cherry Blossom Corporation authorizes the issuance of 900 shares of preferred stock and 3,500 shares of common stock. During a two-month period, Cherry Blossom completed these stock-issuance transactions:
Mar. 23 Issued 210 shares of $1 par value common stock for cash of $10 per share.
Apr. 12 Received inventory with a market value of $25,000 and equipment with a market value of $16,000 for 350 shares of the $1 par value common stock.
17 Issued 900 shares of 6%, $50 par value preferred stock for $50 per share.
Requirements:-
1. Record the transactions in the general journal.
2. Prepare the stockholder sâ€TM equity section of the Cherry Blossom balance sheet as of April 30, 2016, for the transactions given in this exercise. Retained Earnings has a balance of $70,000 at April 30, 2016.