Burgers \& Fries, Inc., is authorized to issue an unlimited number of common shares and 10,000 preferred shares. During its first year, the business completed the following share issuance transactions:

{Requirements}
1. Journalize the transactions. Explanations are not required.
2. Prepare the shareholders' equity section of Burgers \& Fries's balance sheet. The ending balance of Retained Earnings is a deficit of \(\$ 42,000\).

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July 19 Oct. 3 11 Issued 10,000 common shares for cash of $6.50 per share. Issued 500 $1.50 preferred shares for $50,000 cash. Received inventory valued at $11,000 and equipment with fair value of $8,500 for 3,300 common shares.