On January 2, 20X1, Seminoles Investment Company began business by issuing 25,000 shares at $4 at par value for $500,000 cash. The cash was invested, and on December 26, 20X1 all investments were sold for $541,000 cash. Operating expenses for 20X1 were $16,000 all paid in cash. Therefore, net income for 20X1 was on January 30, 20X2, the company bought and retired 6,000 of its own shares on the open market $15.00 each.

1.Prepare journal entries for issuance of shares, declaration and payment of cash dividends, and retirement of shares.

2. Create a balance sheet as of December 31, 20X1