The articles of incorporation for Plum Corp. authorize the company to issue 100,000 $5 preferred shares and 500,000 common shares. During its first fiscal year of operations, Plum Corp. completed the following selected transactions:

2019

Dec. 4 Issued 5,000 common shares to the consultants who formed the corporation, receiving cash of $140,000.

13 Issued 500 preferred shares for cash of $55,000.

14 Issued 4,000 common shares in exchange for land valued at $120,000.

2020

Nov. 30 Earned a profit for the fiscal year and closed the $120,000 net income into Retained Earnings.

Required

1. Record the transactions in the general journal.

2. Prepare the shareholders’ equity section of the Plum Corp. balance sheet at November 30, 2020.