a) Four students from EUBS decided to start some business together in 2020: delivery of excellent vegan food in San Francisco. They organized a corporation called EUBS VEGAN, Inc. The corporation was authorized to issue 10.000 shares of $ 25 par value, 8 % cumulative preferred stock and 50.000 shares of $5 par value common stock. Following instructions incurred during the year: 5. Jan: Issued for cash 15.000 of common stock at $12 per share. The shares were issued to the four students and 3 more friends, who also wanted to join the business.

8. Jan: Issued additional 400 shares of common stock to student Charles. He contributed his fairly old car for delivering the food to the customers. At that time the value of the car was estimated with $ 5.600 and a useful life of 3 years.

1. Feb: Issued 1.500 shares of preferred stock for overall $ 37.500. Shares were distributed to family and friends of the founders, who did not receive any common shares. Preferred stock was eligible for dividend of the full year 2020.

1. July: From another old friend the company aquired a new year, which was perfectly equipped for the delivery business. All parties agreed that this transaction would be paid by issue of another 2.000 of common stock. Price of this car would have been $ 36.000.

3. Dec: First annual dividend of 8% per share was declared on the preferred stock to be paid on 21. December. 21.Dec: Paid the cash dividend declared on 3. Dec.

31.Dec: After the revenue and expenses were closed into the Income Summary account, the account indicated a net income of $ 54.500. The students were very happy about the success of the first year in business !

Tasks: - Prepare journal entries to record these transactions, including entries at 31 December to close the Income Summary account and the Dividends account. (16 points)

- Prepare the shareholders` equity section of EUBS VEGAN, Inc. balance sheet at 31. Dec. 2020; include all mandatory information !

ANSEWR IN TABLE FORMAT!