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On January 1, 2019, the shareholders equity section of Graham Corporation had the following equity accounts: Share Capital-Preference, 10%, $100 par value, 100,000 shares authorized

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On January 1, 2019, the shareholders equity section of Graham Corporation had the following equity accounts: Share Capital-Preference, 10%, $100 par value, 100,000 shares authorized and 4,000 shares issued $400,000 Share Capital- Ordinary, S2 par value, 500,000 shares authorized, 100,000 shares issued and outstanding 200,000 Share Premium- Preference 60,000 Share Premium-Ordinary 150,000 Retained Earnings 120,000 The following transactions occurred during 2019, the first year of operations: Jan. 4 Issued 22,000 ordinary shares for cash at $15 per share. Jan. 8 Issued 1,000 preference shares for cash of $110,000. Feb.1 2 Issued an additional 600 ordinary shares to Donald Law Firm in exchange for the services provided in organizing the corporation. The services provided was worth $8,000. Mar. 3 The corporation purchased 1,700 ordinary shares for treasury at a price of $12 per share. Apr. 6 Acquired land as a future building site in exchange for 16,000 ordinary shares. The fair market value of land was $160,000. May 2 Sold 900 shares of the treasury shares for cash at a price of $15 per share. June 30 Declared 3% share dividends on 137,800 ordinary shares outstanding. The market value of ordinary shares on this date was $22 per share. July 5 Issued the shares for the share dividend. Dec. 15 The board of directors declared the first annual $50,000 cash dividends on the preference shares, to be paid on January 15, 2020. Dec. 31 Reported a net income of $250,000 for the accounting year. Dec. 31 Close the dividend accounts. Instructions: (a) Journalize the above transactions. (b) Prepare the equity section of Graham Corporation as at Dec 31, 2019. Account Title Debit Credit (a) Date 2019 Jan. 4 Jan. 8 Feb. 121 March 3 April 6 May 2 June 30 July 5 Dec 15 Dec. 15 Dec. 31 Dec. 31 (b) Equity section Graham Corp. Statement of Financial Position December 31, 2019 Shareholder's Equity: Dec. 31 (b) Equity section Graham Corp. Statement of Financial Position December 31, 2019 Shareholder's Equity

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