The equity accounts of Donald Corporation on January 1, 2020, were as follows.

Share Capital Preference 8%, cumulative, $50 par,

12,000 share authorized and issued $600,000

Share Capital Ordinary $1 stated value, 2,200,000 shares authorized,

1,200,000 shares issued and 1,170,000 shares outstanding 1,200,000

Share Premium Preference 120,000

Share Premium Ordinary 1,300,000

Retained Earnings 2,000,000

Treasury Shares Ordinary (30,000 shares) 120,000

During 2020, the company had the following transactions and events pertaining to its equity.

Mar. 1 Issued 35,000 ordinary shares for $175,000.

May. 10 Sold 18,000 treasury shares ordinary for $90,000.

Aug. 5 Issued 10,000 ordinary shares for a patent valued at $62,000.

Oct. 20 Purchased 1,300 ordinary shares for the treasury at a cost of $7,800.

Dec. 31 Net income for the year was $560,000.

***No dividends were declared during the year.

Required:

a) Journalize the above transactions and closing entry for net income.

b) Prepare the equity section at December 31, 2020.