Reference no: EM132816420

Moonshine Corporation has authorized share capital of an unlimited number of common shares and 800,000, $2 preferred shares. On January 1, 2020, the balance in its shareholders equity included:

12,000 common shares valued at $52,000,
4,800 preferred shares valued at $32,000 and
Retained earnings of $125,000.

Profit for the year ending December 31, 2020 was $29,000. No dividends were declared during 2020. During 2020, Moonshine Corporation had the following share transactions:

Mar 1 Issued 8,000 common shares for $6 each.
Jun 30 Issued 1500 preferred shares for $11 each.
Sep 1 Issued 75,000 common shares in exchange for land valued at $325,000.

Required:

Problem a) Journalize the share transactions during 2020.

Problem b) Prepare the equity section of Moonshine Corporation's balance sheet on December 31, 2020.