The articles of incorporation for Plum Corp. authorize the company to issue 100,000 $5 preferred shares and 500,000 common shares. During its first fiscal year of operations, Plum Corp. completed the following selected transactions:

Required

1. Record the transactions in the general journal.

2. Prepare the shareholders equity section of the Plum Corp. balance sheet at November 30, 2020.

hint 2 Issuing shares and preparing the shareholders equity section of the balance sheet

2. Total shareholders equity, $435,000

2019 Dec. 4 Issued 5,000 common shares to the consultants who formed the corporation, receiving cash of $140,000. 13 Issued 500 preferred shares for cash of $55,000. 14 Issued 4,000 common shares in exchange for land valued at $120,000. 2020 Nov. 30 Earned a profit for the fiscal year and closed the $120,000 net income into Retained Earnings