Sunshine Corporation has authorized share capital of an unlimited number of common shares and 700,000, $3 preferred shares. On January 1, 2020, the balance in its shareholders equity included:

14,000 common shares valued at $75,000,

2,500 preferred shares valued at $25,000 and

Retained earnings of $116,000.

Profit for the year ending December 31, 2020 was $26,000. No dividends were declared during 2020.

During 2020, Sunshine Corporation had the following share transactions:

Mar 1Issued 4,000 common shares for $8 each.

Jun 30Issued 1500 preferred shares for $16 each.

Sep 1Issued 60,000 common shares in exchange for land valued at $550,000.

Required:

a)Journalize the share transactions. (6 marks)

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