(Learning Objective 2: Issuing shares and reporting shareholders’ equity) Bread

& Butter, Inc., is authorized to issue 120,000 shares of ordinary shares and 7,000 shares of preference shares. During its fi rst year, the business completed the following share issuance transactions:

All of the A and B exercises can be found within MyAccountingLab, an online homework and practice environment. Your instructor may ask you to complete these exercises using MyAccountingLab.

❙ Requirements 1. Journalize the transactions. Explanations are not required.

2. Prepare the shareholders’ equity section of Bread & Butter’s balance sheet. The ending balance of retained earnings is a defi cit of $43,000.