Use the data from E8-30A to prepare the shareholders’ equity section of the balance sheet at March 31. Retained earnings at month end are $75,000.

In E8-30A Surfing Dewd Corporation is authorized to issue both preferred and common stock. Surfing Dewd’s preferred stock is $105 par, 6% preferred stock. During the first month of operations, the company engaged in the following transactions related to its stock. Show each of the following transactions in the accounting equation:

March 1 Issued 16,000 shares of $0.50 par value common stock for cash at $5 per share

March 11 Issued 1,500 shares of preferred stock at par

March 16 Purchased 3,000 shares of common stock to be held in the treasury for $7 per share

March 18 Issued 32,000 shares $0.50 par value common stock for cash at $10 per share

March 20 Sold 2,900 shares of the treasury stock purchased on the 16th for $12 per share

March 31 Declared a $10,000 dividend