Pink Corporation has authorized share capital of 860,000 common shares and 480,000 preferred shares. On January 1, 2020, the balance in its shareholders equity included:

8,000 common shares valued at $27,000,

3,500 preferred shares valued at $19,500 and

Retained earnings of $23,000.

Profit for the year ending December 31, 2020 was $31,000. No dividends were declared or paid to any shareholders during 2020.

During 2020, Pink Corporation had the following share transactions:

May 1 Issued 11,000 common shares for $6 each.

July 30 Issued 2,700 preferred shares for $9 each.

Oct 8 Issued 24,000 common shares in exchange for Building valued at $150,000.

Required:

a) Journalize the share transactions during 2020. (6 marks)

b) Prepare the equity section of Pink Corporations balance sheet at December 31, 2020. (14 marks)