Tuggy Ltd. was authorized to issue 10,000 $2.00 preferred shares and unlimited common shares. December 31 is Tuggy's year end. During 2019, its first year of operations, the following selected transactions occurred: January 21: Issued 32,000 common shares to the corporation's organizers in exchange for services to get the company operational. Their efforts are estimated to be worth $15,000. February 19: 15,000 common shares were issued for cash of $6 per share. March 11: 4,500 preferred shares were issued for cash totaling $90,000. April 5: 60,000 common shares were issued in exchange for land and building with appraised values of $300,000 and $120,000 respectively. May 8: 3,500 of the preferred shares were issued for a cash price of $18.00 per shares. May 22: Declared and paid dividends to the shareholders of record on May 15. Total cash paid was $50,000. June 20: 16,000 of the common shares were issued for a cash total of $112,000. July 13: 2,000 preferred shares and 20,000 common shares were issued for a cash price of $17.50 and $7.50 respectively. December 31: The company closed all its temporary accounts. The Income Summary account showed a debit balance of $25,000. Instructions a. Prepare journal entries for each item above during Tuggy's first year of operations. b. Prepare the equity section of the balance sheet in good form for the year ended December 31, 2019