Cobalt Limited started operations January 1, 2019. Cobalt was authorized to issue to 500,000 common shares and 200,000 preferred shares ($1, cumulative). The company had net income of $80,000 for the year. Cobalt also had the following transactions. Jan 1 Apr 15 Issued 9,100 Common shares for $45,000. Cobalt issued 30,000 Preferred shares in exchange for land with fair value of $80,000. Aug 31 Oct 1 Required: Cobalt declared dividends of $50,000. The company paid dividends. 1. Prepare the above journal entries. (No Explanations Necessary) 2. Prepare the Shareholders' equity section of the balance sheet as at December 31, 2019