Equity section of Sol Corporation shows the following on January 1, 2019.

Shares Ordinary Ordinary, $1 par value 1,000,000 shares authorized,

400,000 shares issued and outstanding $ 400,000

Shares premium Ordinary $ 600,000

Retained earnings $ 2,500,000

Total Equity $ 3,500,000

During the year, the company had following transactions occurred:

Mar. 1 Issued 100,000 ordinary shares for $300,000.

Jun. 1 Acquired 10,000 shares of its shares for the treasury at $4 per share

Sep. 1 Sold 2,000 shares of Treasury shares at $5 per share

Dec 1 Declared a cash dividend of $1.5 per share to shareholders of record on Dec 15.

Dec 20 Sold 5,000 shares of Treasury shares at $3

Dec 30 Paid cash dividend.

Instructions

1. Prepare journal entries to record the above transactions.
2. Company had net income of $450,000 in 2019. Please prepare the equity section of balance sheet as of December 31, 2019.