Equity section of Sol Corporation shows the following on January 1, 2020.

Shares Ordinary Ordinary, $1 par value 500,000 shares authorized,

300,000 shares issued and outstanding $300,000

Shares premium Ordinary $900,000

Retained earnings $3,200,000

Total Equity $ 4,400,000

During the year, the company had following transactions occurred:

Mar. 1 Issued 30,000 ordinary shares for $180,000.

Jun. 1 Acquired 10,000 shares of its shares for the treasury at $7 per share

Sep. 1 Sold 3,000 shares of Treasury shares at $8 per share

Dec 1 Declared a cash dividend of $1.0 per share to shareholders of record on Dec 15.

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

Dec 30 Paid cash dividend.

Instructions

1. Prepare journal entries to record the above transactions.

2. Company had net income of $640,000 in 2020. Please prepare the equity section of balance sheet as of December 31, 2020.