Horatio Corp is authorized to issue an unlimited number of common shares. The year-end for Horatio is December 31. At the end of 2019, the following balances were reported in shareholders equity:

Common shares, 180,000 issued $2,430,000

Retained earnings 2,325,400

The following transactions took place during 2020:

2020

Mar 10 Horatio purchased and retired 7,000 of its own common shares on the open market at $15 per share.

Oct 10 Horatio declared and issued a 5% stock dividend. The dividend was valued at $19 per share, the fair value of the shares. The dividend resulted in the issuance of a number of whole shares but also entitlement to 750 shares as fractional shares.

Nov 30 Horatio issued 10,000 common shares in exchange for a building with a fair value of $325,000. Shares were trading at $21 per share on this date.

Dec 15 15,000 common shares were sold by subscription for $20 each. The terms require 40% of the balance to be paid in cash immediately and the balance to be paid by June 1, 2021.

Dec 31 The fractional share rights lapse.

Required:

Prepare journal entries to record the above transactions. (14 marks)