1. Moroccan Marble Company, a public company, produces custom marble furniture. On January 1, 2020, it had the following balances in shareholders equity:

Shareholders Equity

Contributed Capital

Share Capital

$2.50 Noncumulative preferred shares, 100,000 shares authorized, 2,000 shares issued $ 50,000

Common shares, unlimited number authorized, 20,000 shares issued 100,000

Total Contributed Capital $150,000

Retained Earnings 456,000

Total Shareholders Equity $606,000

The company has a corporate tax rate of 25%.

Below are selected transactions for the fiscal year ended December 31, 2020:

Jan. 15 Reacquired 5,000 common shares for $4.00 per share.

Mar. 20 Issued 25,000 common shares in exchange for equipment. The fair market value of the equipment was $160,000. On this day, the common shares were trading at $7 per share.

Aug. 10 Split the common shares 2 for 1.

Oct. 22 The board of directors declared a cash dividend of $8,000 to be paid on December 10 to the shareholders of record on November 20.

Dec. 10 Paid the cash dividend.

Instructions:

Prepare the necessary journal entries to record the above transactions for 2020.