The Winkler Hospital Supply Corporation was organised in 20xx. The company was authorised to issue 100,000 ordinary shares with a stated value of 5 per share, and 20,000 preference shares of 100 nominal value, 6 per cent noncumulative. On March 1 the company sold 60,000 ordinary shares for 15 per share and 8,000 preference shares for 100 per share.

1. Prepare the journal entries to record the sale of the shares.

2. Prepare the company's shareholders' equity section of the balance sheet immediately after the ordinary and preference shares were issued.