Can someone pls help me on this accounting question?

Question

The partners who own Bassett Furniture Co. wished to avoid the unlimited personal liability of the partnership form of business, so they incorporated as BFC Inc. The charter from the state of Florida authorizes the corporation to issue 10,000 shares of $6 no-par preferred stock and 250,000 shares of $5 par common stock. In its first month, BFC completed the following transactions:

Jan. 3 Issued 1,000 shares of common stock to the promoter for assistance with issuance of the common stock. The promotional

fee was $10,000. Debit Organization Expense.

Jan. 6 Issued 5,000 shares of common stock to Jo Bassett and 3,800 shares to Mel Bassett in return for cash equal to the stock’s market value of $11 per share. The Bassetts were partners in Bassett Furniture Co.

Jan. 12 Issued 1,000 shares of preferred stock to acquire a patent with a market value of $110,000.

Jan 22 Issued 1,500 shares of common stock for $12 cash per share.

Instructions

1. Record the transactions in journal.

2. Prepare the stockholders’ equity section of the BFC Inc. balance sheet at January 31. The ending balance of Retained Earnings is $89,000.

Answer 1

1. Record the transactions in journal

Jan. 3 Issued 1,000 shares of common stock to the promoter for assistance with issuance of the common stock. The promotional fee was $10,000. Debit Organization Expense

Dr Organization Expense $10,000

Cr Common stock $5,000

Cr Paid-in Capital in Excess of Par Value $5,000

Jan. 6 Issued 5,000 shares of common stock to Jo Bassett and 3,800 shares to Mel Bassett in return for cash equal to the stock’s market value of $11 per share. The Bassetts were partners in Bassett Furniture Co.

Dr Cash $96,800

Cr Common stock $44,000

Cr Paid-in Capital in Excess of Par Value $52,800

Jan. 12 Issued 1,000 shares of preferred stock to acquire a patent with a market value of $110,000

Dr Patent $110,000

Cr Preferred stock $6,000

Cr Paid-in Capital in Excess of Stated Value $104,000

Jan 22 Issued 1,500 shares of common stock for $12 cash per share

Dr Cash $18,000

Cr Common stock $7,500

Cr Paid-in Capital in Excess of Par Value $10,500

2. Prepare the stockholders’ equity section of the BFC Inc. balance sheet at January 31. The ending balance of Retained Earnings is $89,000

Stockholders' Equity

Contributed Capital

...Preferred stock, $6 stated value, 10,000 shares authorised, 1,000 shares issued and outstanding...$6,000

...Common stock, $5 par value, 250,000 shares authorised, 11,300 shares issued and outstanding...$56,500

...Paid-in capital in excess of stated value - preferred stock...$104,000

...Paid-in capital in excess of par value - common stock...$68,300

...Total contributed capital $234,800

Retained Earnings $89,000

Total stockholders' equity $323,800