Use the data from E8-46B to prepare the shareholders’ equity section of the balance sheet at May 31. Retained earnings at month-end are $105,000.

In E8-46B, Minute Magazine Publications, Inc., is authorized to issue both preferred and common stock. Minute Magazine’s preferred stock is $155 par, 10% preferred stock. During the first month of operations, the company engaged in the following transactions related to its stock. For each of the following transactions, show how it would be recorded in the accounting equation:

May 1Issued 50,000 shares of $1.00 par value common stock for cash at $12 per share

May 9Issued 2,000 shares of preferred stock at par

May 17 Purchased 2,500 shares of common stock to be held in the treasury for $15 per share

May 21 Issued 35,000 shares $1.00 par value common stock for cash at $18 per share

May 28 Sold 2,000 shares of the treasury stock purchased on the 17th for $20 per share

May 31 Declared a $39,000 dividend