Chapter 10, Problem 10.41BE

(Learning Objectives 2, 6: Account for issuance of stock; prepare the stockholders’ equity section of a balance sheet) Caribbean Imports is authorized to issue 16,000 shares of common stock. During a two-month period, Caribbean completed these stock transactions:

Apr 23	Issued 3,200 shares of $2.00 par common stock for cash of $16,00 per share
May 12	Received inventory with a market value of $11,00 and equipment with market value of $44,000 for 3,700 shares of the $2,00 par common stock.

Requirements

1. 1. Journalize the transactions.
2. 2. Prepare the stockholders’ equity section of Caribbean’s balance sheet for the transactions. The company’s Retained Earnings account has a balance of $51,000.