In 2022, Amber Wilson, owner of Canyon Canoe Company, started a new company that will be operated as a corporation, Outdoor Equipment Incorporated (OEI). This company sells outdoor clothing and equipment. The articles of incorporation for OEI authorized the company to issue 500,000 preferred shares that pay a dividend of $4.00 per year and 1,000,000 common shares.

At January 1, 2023, the 2,000 preferred shares had a balance of $70,000, the 50,000 common shares had a balance of $200,000, and the retained earnings balance was $402,000.

In January 2023, OEI has the following transactions related to its common shares:

Jan. 3 The company sold 1,000 of its common shares for $8.00 per share to a small number of people who believed in the company's potential for profit.

20 The company repurchased 100 of its common shares for $10.00 per share from a shareholder who was having financial difficulties.

30 The company sold 100 common shares for $12.00 per share.

Required

1. Journalize the entries related to the transactions.

2. Calculate the ending balance in the Common Shares account.

3. Prepare the statement of shareholders' equity for January 31, 2023. Assume that net income for the period was $67,500.