Q1 ABC Company reported the following balances at December 31, 2016 share $500,000, share premiumordinary $100,000, andordinary

retained earnings $250,000. During 2017, the following transactions affected shareholders 'equity

1. Issued preference shares with a par value of $125,000 for $200,000.

2. Purchased treasury shares (ordinary ) for $40,000.

3. Earned net income of $180,000.

4. Declared and paid cash dividends of $56,000.

Instruction

-prepare journal entries& closing entries for above transaction

-Prepare the shareholders equity section of ABC Companys December 31, 2017, balancesheet