The articles of incorporation for Post Malone Painting Inc. authorize the company to issue 1,000,000, $2.00 preferred shares and 2,000,000 common shares. During its first year of operations, Post Malone Painting Inc. completed the following transactions during 2021:

Jan 3 Issued 100,000 common shares receiving cash of $1,000,000.

Jan 28 Issued 250,000 preferred shares receiving cash of $500,000

Jan 30 Issued 25,000 common shares in exchange for equipment valued at $43,000

Dec 15 Malone declared a dividend of $10,000 to its shareholders.

Dec. 28 Malone paid the cash dividend.

Required:

1. Record the transactions in the general journal

b. Prepare the shareholders equity section of Post Malones balance sheet at December 31, 2021 assuming the company earned $50,000 in net income.