The information below is taken from the shareholders’ equity section of the statement of financial position for Harcus Cable:

Required

Provide the journal entries for the following:

a. The issuance of preferred shares during 2020.

b. The purchase of 1,000,000 common shares during 2020 at $6 per share.

c. The closing entry to record net income of $11,000,000.

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2020 Shareholders' equity 2019 $ 14,000,000 $ 4,000,000 Preferred shares, authorized 10,000,000 shares, 5,000,000 and 2,000,000 issued and outstanding at December 31, 2020, and December 31, 2019, respectively. Common shares, authorized 25,000,000 shares, 1,000,000 and 2,000,000 shares issued and outstanding at December 31, 2020, and December 31, 2019, respectively. 5,000,000 10,000,000 Retained earnings 135,000,000 125,000,000 Accumulated other comprehensive income (loss) (20,000,000) (35,000,000) Total shareholders' equity $269,000,000 $104,000,000