Peck Company is authorized to issue 20,000 shares of €50 par value, 10% preference shares and 125,000 shares of €5 par value ordinary shares. On January 1, 2020, the ledger contained the following equity balances.

Share Capital—Preference (10,000 shares) ....................................€500,000
Share Premium—Preference ................................................................75,000
Share Capital—Ordinary (70,000 shares) ..........................................350,000
Share Premium—Ordinary .................................................................700,000
Retained Earnings ................................................................................300,000

During 2020, the following transactions occurred.

Feb.     1 Issued 2,000 preference shares for land having a fair value of €120,000.
Mar.    1 Issued 1,000 preference shares for cash at €65 per share.
July      1 Issued 16,000 ordinary shares for cash at €7 per share.
Sept.   1 Issued 400 preference shares for a patent. The asking price of the patent was €30,000. Market price for the preference shares was €70 and the fair value for the patent was indeterminable.
Dec.    1 Issued 8,000 ordinary shares for cash at €7.50 per share.
Dec.  31 Net income for the year was €260,000. No dividends were declared.

Instructions
a. Journalize the transactions and the closing entry for net income.
b. Enter the beginning balances in the accounts, and post the journal entries to the equity accounts. (Use J2 for the posting reference.)
c. Prepare an equity section at December 31, 2020.