JOURNAL ENTRY'S

The January 1, 2020 opening balance in common shares was $3,600,000 (300,000 shares)

The January 1, 2020 opening balance in prefered shares was $500,000 (10,000 preferred shares).

1. On January 1, 2020 there were dividends in arrears on the preferred shares of $30,000.

2. On June 25, 2020 one of the company's shareholders needed cash for personal reasons.

The company agreed to reacquire 20,000 common shares from this shareholder

for $15 per share. The opening credit balance at January 1, 2020 in the contributed surplus

account was $50,769.