39) Northern Lights Corporation was created on January 2, 2020. The articles of incorporation from the Government of Canada authorize Northern Lights Corporation to issue an unlimited number of common shares and 500,000 shares of $0.50, non-cumulative preferred shares. No dividends were declared in 2020. The company had the following transactions: 2020 3 Jan. 2 Gave 5,000 common shares to the corporation's legal firm for incorporating the business. The total legal fee was $5,000. Issued 200,000 common shares for cash at $1 per share. Issued 10,000 preferred shares for cash at $10 per share. Exchanged $50,000 cash and 200,000 common shares for a building with a market value of $260,000 Dec, 01 Declared the required cash dividend on the preferred shares. Declared a $0.50 dividend on the common shares. Close Income Summary to Retained Earnings assuming that Nevada had a $63,000 loss for the year. 4 01 REQUIRED A) Journalize the above transactions. Explanations are not required. 12 marks B) Prepare the shareholders' equity section of the balance sheet as of the close of business on December 31, 2020.8 marks