Bancroft Holdings Inc. has authorized share capital of an unlimited number of common shares and 1,000,000 preferred, $ 3-cumulative preferred shares. At January 1, 2021, the balances in its share capital accounts were $ 45,000 in common shares representing 15,000 shares and $ 30,000 in preferred shares representing 1,000 shares. The retained earnings balance on that date was $ 180,000. Profit for the year ending December 31, 2021 was $ 24,000. There were no dividends in arrears at January 1, 2021 and no dividends were declared during 2021.

During 2021, Bancroft had the following share transactions: Mar 1 Issued 4,000 common shares for $ 5 each.

Jun 30 Issued 500 preferred shares for $ 11 each.

sept1 Issued 60,000 common shares in exchange for land valued at $ 285,000

a) Journalize the share transaction

b Prepare the equity section of Bancrofts balance sheet at December 31, 2021 and describe any disclosure requirements related to share capital.

c Calculate return on equity for 2021