Question: The partners who own Cadence Canoes Co wished to avoid

The partners who own Cadence Canoes Co. wished to avoid the unlimited personal liability of the partnership form of business, so they incorporated as Cadence Canoes, Inc. The charter from the state of Florida authorizes the corporation to issue 175,000 shares of $20 par common stock. In its first month, Cadence Canoes completed the following transactions:
Jan 6 Issued 200 shares of common stock to the promoter for assistance with issuance of common stock. The promotional fee was $5,000. Debit Organization Expense.
9 Issued 10,000 shares of common stock to Bryce Kuhl and
24,000 shares to Arnold Ameen in return for cash equal to the stock’s market value of $25 per share. The two men were partners in Cadence Canoes Co.
26 Issued 1,200 shares of common stock for $30 cash per share.

1. Record the transactions in the journal.
2. Prepare the stockholders’ equity section of Cadence Canoes, Inc., balance sheet at January 31, 2015. Te ending balance of Retained Earnings is $88,000.

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  • CreatedJuly 25, 2014
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