McGregor Corporation is authorized to issue an unlimited number of common shares and 500,000 shares of preferred shares. During 2021, its first year of operation, the company had profit of $305,000. The following share transactions occurred:

Jun

1

Paid the province $1,800 for incorporation fees.

Jun

5

Issued 100,000 of $4 cumulative preferred shares at $22 per share.

Jul

25

Lawyers for the company accepted 250 common shares as payment for legal services

provided in helping the company incorporate. The legal services are estimated to have a value of $4,500. The shares were actively trading at $20 per share.

Oct

18

Issued 45,000 common shares for land. The land had an asking price of $850,000. The

shares are currently selling on a Toronto Stock Exchange at $18 per share. Instructions

a)	Journalize the transactions for McGregor Corporation assuming the company follows IFRS.

b)	Prepare the shareholders' equity section of the balance sheet at December 31, 2021.