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.
1. Record the transactions in the general journal.
2. Prepare the stockholders’ 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.