The partners who own Jefferson Canoes Co. wished to avoid the unlimited personal liability of the partnership

Question:

The partners who own Jefferson Canoes Co. wished to avoid the unlimited personal liability of the form of business, so they incorporated as Jefferson Canoes, Inc. The charter from the state of Nevada authorizes the to issue 110,000 shares of $8 par . In its first month, Jefferson Canoes completed the following transactions:
Mar 6 Issued 700 shares of to the promoter for assistance with issuance of the . The promotional fee was $14,700. Debit Organization Expense.
9 Issued 8,000 shares of to Jim Jefferson and 20,000 shares to John Jefferson in return for cash equal to the stock’s market value of $21 per share. The Jefferson’s were partners in Jefferson Canoes Co.
26 Issued 1,400 shares of for $21 cash per share.

Requirements
1. Record the transactions in the journal.
2. Prepare the stockholders’ equity section of the Jefferson Canoes, Inc., at March 31. The ending balance of Retained Earnings is $65,000.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...