On June 30, 2023, Wood Fire Limited was authorized to issue 60,000 shares of $5 cumulative preferred shares and 250,000 common shares. During its start-up phase, the company engaged in several transactions.

Required

1. Prepare journal entries for the following transactions:
   1. June 30: Sold 40,000 preferred shares at $110 per share.
   2. June 30: Sold 50,000 common shares at $30 per share.
   3. July 5: Issued 5,000 common shares in exchange for equipment valued objectively at $165,000.