Limited was set up in April 2020 to operate a financial consulting business. Its financial year ended is 31 December each year. Its memorandum and articles association authorized the company to 11,500 ordinary shares. Par value per share is $10.

During the first year, the following selected transactions were completed:

Sold and issued 5,600 shares of ordinary share for cash at $20 per share. Sold and issued 1,000 shares of ordinary share for cash at $25 per share. Bought 1,000 shares from a shareholder for cash at $28 per share.

At year-end, the company incurred a loss of $2,000.

Required:

(a) Prepare the journal entry required for each of the transactions.

(b) PreparetheshareholdersequitysectionasitshouldbereportedontheStatementofFinancial Position.