Fast Cars Inc. was authorized to issue 50,000 $1.50 preferred shares and 300,000 common shares. During 2020, its first year of operations, the following selected transactions occurred:

Required

a. Journalize the above transactions.

b. Prepare the equity section of Fast Car?s balance sheet at December 31, 2020.

c. The preferred shares are described as ?$1.50 preferred shares.? Explain what the $1.50 means.

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5,500 of the preferred shares were issued at $13.00 per share; cash. Jan. 15,000 of the common shares were issued for a total of $131,000; cash. Feb. Mar. 3,000 of the common shares were given to the organizers of the corporation regarding their efforts. The shares were valued at a total of $29,300. 12,500 preferred shares and 22,500 common shares were issued at $13.10 and $9.50 respectively; cash. 20 May Dec. 15 The Income Summary account was closed; it showed a debit balance of $334,000. December 31 is Fast Car's 31 year-end.