HoShi Electronics’ charter authorized the company to issue an unlimited number of common shares and 250,000 preferred shares. The following transactions occurred during Hoshi’s first year of business:

Mar 10 Issued 3,000 common shares to the firm’s promoters for the work done to set up the corporation. This work has an estimated value of $90,000.

July 21 20,000 shares were issued for cash of $32 per share.

Sep 1 12,000 preferred shares were issued for cash totalling $300,000.

Dec 11 27,000 common shares in total were issued for land, buildings, and equipment with appraised values of $225,000, $450,000, and $270,000 respectively.

Requirements

1. Prepare journal entries for all the transactions.

2. Prepare the shareholders’ equity section of the balance sheet at December 31, 2014.