Laurentian Mills Ltd. had the following shareholders' equity at January 1, 2020. 

The contributed surplus accounts arose from amounts received in excess of the par value of the shares when issued. During 2020, the following transactions occurred: 

1. Equipment was purchased in exchange for 100 common shares. The shares' fair value on the exchange date was $12 per share. 
2. Sold 1,000 common shares and 100 preferred shares for the lump-sum price of $24,500. The common shares had a market price of $14 at the time of the sale. 
3. Sold 2,000 preferred shares for cash at $102 per share. 
4. All of the subscribers paid their subscription prices into the firm.
5. The common shares subscribed were issued. 
6. Repurchased and retired 1,000 common shares at $15 per share. Calculate the amount recorded to contributed surplus on a pro rata basis and round to three decimal places. 
7. Net income for 2020 was $246,000.

Instructions 

Prepare the shareholders' equity section for the company as at December 31, 2020.

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Preferred shares, 8%, $100 par value, 10,000 shares authorized, 4,00o shares issued $ 400,000 Common shares, $2 par value, 200,000 shares authorized, 80,000 shares issued 160,000 Common shares subscribed, 10,000 shares 20,000 Contributed surplus-preferred Contributed surplus-common 20,000 940,000 Retained earnings 780,000 2,320,000 Less: Common share subscriptions receivable Total shareholders' equity 40,000 $2,280,000