The articles of incorporation for Juniper Tile Ltd. Authorize the company to issue 500,000, $6 preferred shares and 1,500,000 common shares. During its first year of operations, Juniper Tile Ltd. completed the following transactions:

2019

Jan 4Issued 100,000 common shares receiving cash of $800,000.

Jan 13Issued 6,000 preferred shares receiving cash of $80,000

Jan 14Issued 10,000 common shares in exchange for equipment valued at $70,000

Required:

(a) Record the transactions in the general journal

(b) Prepare the shareholders equity section of Magic Systems Ltd. balance sheet at December 31. 2019 assuming the company earned $285,000 in net income during its first year of operations.