Question B1 Below is the unadjusted trial balance of Johnson Corporation as at 31 December 2019:

Johnson Corporation Unadjusted Trial Balance 31 December 2019
	Debit $	Credit $
Cash	966,525
Office supplies	10,500
Accounts receivable	477,750
Prepaid rent	67,725
Equipment	131,250
Accumulated depreciation: Equipment		13,650
Land and building	2,586,150
Accounts payable		68,250
Dividend payable		57,750
Ordinary share capital (par value $5 per share)		3,000,000
Share premium		75,000
Treasury shares (acquired at $11 each)	404,250
Retained earnings		378,000
Dividends	57,750
Service revenues		1,755,000
Operating expenses	645,750
TOTAL	5,347,650	5,347,650

Johnson Corporation closes its books annually on 31 December. It keeps only ONE share premium account to record any related transactions. After preparing the above unadjusted Trial Balance, the accountant of Johnson found that he had omitted the following transactions:

1. 1 December - issued 1,000, 5% preference shares of $100 par value at a price of $105 per share.

2. 5 December - sold 11,000 of its treasury shares at $ 10 per share.

3. 20 December - sold 15,000 of its treasury shares at $12 per share.

4. On 31 December, the Board of Directors declared to pay a final dividend of $0.2 per ordinary share. All dividends that Johnson owed to its shareholders were paid out on the same day.

Required:

(a) Journalize the above transactions. No explanation is required. (13 marks)

(b) What is the balance of Retained Earnings after the 2019 year-end closing? (2 marks)