Reference no: EM133043870

Question - Stockholders' Equity: Transactions and Balance Sheet Presentation Torey Corporation was organized on April 1, with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred:

Apr. 1 Issued 80,000 shares of common stock at $40 cash per share.

Apr. 3 Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $31,000.

Apr. 8 Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000.

Apr. 20 Issued 6,000 shares of preferred stock for cash at $80 per share.

Required -

a. Prepare journal entries to record the above transactions.

b. Prepare the stockholders' equity section of the balance sheet at April 30. Assume that the net income for April is $60,000.