Nash Travel Inc., a new corporation, took over the assets and liabilities of Worldwide Travel Agency, owned by Roma David, on June 1, 2019. The assets and liabilities assumed, after appropriate revaluation by Worldwide Travel Agency, are as follows (amounts in parentheses are credits; others are debits):

Cash...........................................................$ 55,000
Accounts Receivable...................................125,000
Allowance for Doubtful Accounts................(25,000)
Merchandise Inventory..................................95,000
Accounts Payable.......................................(35,000)
Accrued Expenses Payable........................(10,000)

The corporation is authorized to issue 500,000 shares of no-par-value common stock with a stated value of $10 per share and 50,000 shares of $50 par-value preferred stock. The preferred stock bears a dividend of $5 per share per year. The transactions entered into at the time the corporation was formed follow.

INSTRUCTIONS
1. Prepare the general journal entries to record the transactions.
2. Prepare the opening balance sheet as of June 1, 2019, for Nash Travel Inc..

Analyze: What is the amount of total stockholders€™ equity at end of day June 1, 2019?

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TRANSACTIONS DATE The corporation issued to Roma David common stock with a stated value equal to her net equity in the sole proprietorship business, and the corporation took over David's assets and liabilities. Issued 2,000 shares of common stock to Ned Turner for $20,000 cash. Issued 2,000 shares of preferred stock to Charles Suz. He paid $100,000 in cash for the stock. June