Doulane Marine obtained a charter from the province in January 2017 that authorized 1,000,000 common shares. During the first year, the company earned $429,000 and the following selected transactions occurred in the order given:

1. Issued 700,000 common shares at $54 cash per share
2. Reacquired and cancelled 25,000 shares at $50 cash per share

Required:

1.Indicate the effects of each transaction on the accounting equation.(Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.)

2.Prepare journal entries to record each transaction.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3.Prepare the shareholders' equity section of the balance sheet at December 31, 2017.