Settler of Catan Co. has authorized share capital of 800,000 common shares and 300,000 preferred shares. On January 1, 2022, the balance in its shareholders equity included: 8,500 common shares valued at $62,000, 3,000 preferred shares valued at $44,000 and Retained earnings of $59,000. Profit for the year ending December 31, 2022, was $35,000. No dividends were declared or paid to any shareholders during 2022. During its first year, the business completed the following share issuance transactions: July 1: Issued 3,000 common shares for cash of $6.50 per share. Oct 3: Issued 500, $1.50 preferred shares for $7,000 cash. Oct 11: Received inventory valued at $11,000 and equipment with fair value of $8,500 for 3,300 common shares. 1. Journalize the transactions. Explanations are not required. 2. Prepare the shareholders' equity section of Settlers of Catan Co's balance sheet.

Settler of Catan Co. has authorized share capital of 800,000 common shares and 300,000 preferred shares. On January 1,2022 , the balance in its shareholders equity included: 8,500 common shares valued at $62,000, 3,000 preferred shares valued at $44,000 and Retained earnings of $59,000. Profit for the year ending December 31,2022 , was $35,000. No dividends were declared or paid to any shareholders during 2022. During its first year, the business completed the following share issuance transactions: - July 1: Issued 3,000 common shares for cash of $6.50 per share. - Oct 3: Issued 500,$1.50 preferred shares for $7,000 cash. - Oct 11: Received inventory valued at $11,000 and equipment with fair value of $8,500 for 3,300 common shares. 1. Journalize the transactions. Explanations are not required. 2. Prepare the shareholders' equity section of Settlers of 'Catan Co's balance sheet