Bradley Sporting Goods is authorized to issue 13,000 shares of common stock. During a two-month period, Bradley completed these stock-issuance transactions:
Jul 23 Issued 4,200 shares of $1.00 par common stock for cash of $13.50 per share.
Aug 12 Received inventory with a market value of $13,000 and equipment with market value of $54,000 for 3,300 shares of the $1.00 par common stock.
1. Journalize the transactions.
2. Prepare the stockholders’ equity section of Bradley Sporting Goods’ balance sheet for the transactions given in this exercise. Retained Earnings has a balance of $51,600.