Question - Account for issuance of stock; report stockholders' equity) Hambrick Sales, Inc., is authorized to issue 170,000 shares of common stock and 5,000 shares of preferred stock. During its first year, the business completed the following stock issuance transactions:
Aug 19 Issued 10,000 shares of $5.00 par common stock for cash of $12.00 per share.
Nov 3 Issued 1,000 shares of $4.00 no par preferred stock for $49,000 cash.
Nov 11 Received inventory valued at $14,000 and equipment with market value of $11,000 for 3,900 shares of the $5.00 par common stock.
Requirements
1. Journalize the transactions. Explanations are not required.
2. Prepare the stockholders' equity section of Hambrick Sales' balance sheet. The ending balance of retained earnings is a deficit of $42,000.]