The shareholders equity section of Chen Industries Limited at November 30, 2022 is shown below:

Shareholders Equity

$1.50 cumulative preferred shares, 1,000 shares issued $ 50,000

Common shares, 10,000 shares issued 60,000

Retained earnings 196,000

$306,000

During 2023 the company completed the following transactions:

February 10 Declared a regular cash dividend on the preferred shares.

March 10 Paid the cash dividend

April 14 Declared a 10% stock dividend on the common shares. Market price per

common share was $7/ share

May 14 Distributed the stock dividend

July 6 Issued 2,000 common shares for $5/ share

November 20 Received equipment valued at $30,000 and issued 3,750 common shares.

REQUIRED:

1. Journalize Chens transactions. Explanations are not required.

2. Prepare the shareholders equity section of Chen Industries Limited balance sheet at November 30, 2023. Net income for the year ended November 30, 2023 was $175,000.