The articles of incorporation from the province of Ontario authorize Challenger Canoes Inc. to issue 10,000 shares

Question:

The articles of incorporation from the province of Ontario authorize Challenger Canoes Inc. to issue 10,000 shares of $6 preferred shares and 100,000 common shares. In its first month, Challenger completed the following transactions:
2017
Oct. 6 Issued 300 common shares to the lawyer for assistance with chartering the corporation. The lawyer's fee was $1,500. Debit Organization Expense.
9 Issued 9,000 common shares to Jerry Spence and 12,000 shares to Sheila Markle in return for cash equal to the shares, market price of $5 per share. Spence and Markle are executives of the company.
10 Issued 400 preferred shares to acquire a patent with a fair value of $40,000.
26 Issued 2,000 common shares for cash of $12,000.
Requirements
1. Record the transactions in the journal.
2. Prepare the shareholders' equity section of the Challenger at October 31, 2017. The ending balance of Retained Earnings is $49,000?
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...