Hill Corporation has authorized share capital of 850,000 common shares and 250,000 preferred shares. On January 1, 2020, the balancein its shareholders equity included:

8,800 common shares valued at $94,000,

4,000 preferred shares valued at $56,000 and

Retained earnings of $65,000.

Profit for the year ending December 31, 2020 was $52,000. No dividends were declared or paid to any shareholders during 2020.

During 2020, Hill Corporation had the following share transactions:

Apr 1Issued 15,000 common shares for $14 each.

July30Issued 3,500 preferred shares for $18 each.

Nov 8Issued 30,000 common shares in exchange for Building valued at $420,000.

Required:

a)Journalize the share transactions during 2020. (6 marks)

b)Prepare the equity section of Hill Corporations balance sheet at December 31, 2020. (14 marks)

2