Transactions of Natural Health Company are as follows:

Month $/$ Year : January $2023$

The company is granted a charter that authorized the issuance of $200,000$ preferred shares and an unlimited number of common shares.

Preferred shares $$6\%$ dividend, $2,000$ shares issued for $$212,000.$

The owners of the corporation are issued $10,000$ common shares for land valued by the Board of Directors at $$205,000($based on an accredited appraisor$).$ The land carrying value was $$180,000.$

The common shares' market price is $$21$ a share at the time of issuance.

The Company sold $15,200$ preferred shares for cash at $$108$ per share.

The Company sold $14,000$ preferred shares for cash at $$111$ per share.

The Company repurchased and cancelled $3,000$ outstanding preferred shares for cash at $$106$ per share.

Paid $$85,000$ in dividends that were declared in the previous period.

Repurchased for cash and cancelled $500$ of the outstanding preferred shares issued at $$105$ per share.

Issued $1,000$ common shares at $$23$ per share.

Declared the annual dividend on preferred shares and a $$2$ dividend per share on common shares. These dividends were payable at $12/31/2023.$

$2023$ net income for the year was $$405,000$ before the corporate income tax. Assuming $15\%$ corporate income tax rate.

Instructions

a$.$ Prepare entries in journal form to record the transactions listed above. No other transactions affecting the capital share accounts have occurred.

b$.$ Assuming that the company has retained earnings from operations of $$1,032,000,$ prepare the shareholders' equity section of its Statement of Financial Position after considering all the transactions above.

a$.$