Hambrick Sales, Inc., is authorized to issue 170,000 shares of common stock and 5,000 shares of preferred stock. During its first year, the business completed the following stock issuance transactions:
Aug 19 Issued 10,000 shares of $5.00 par common stock for cash of $12.00 per share.
Nov 3 Issued 1,000 shares of $4.00 no par preferred stock for $49,000 cash.
11 Received inventory valued at $14,000 and equipment with market value of $11,000 for 3,900 shares of the $5.00 par common stock.

Requirements
1. Journalize the transactions. Explanations are not required.
2. Prepare the stockholders’ equity section of Hambrick Sales’ balance sheet. The ending balance of retained earnings is a deficit of $42,000.