To raise cash for future expansion, Michael Lee incorporated his proprietorship and created Lee Consulting Corporation. The corporation is authorized to issue an unlimited number of common shares and 50,000 $2.00 preferred shares. In July 2016, Michael Lee purchased 20,000 common shares for his proprietorship equity of $30,221 and issued 1,000 of the preferred shares for $50.00 per share to increase his investment in the business.

In August 2016, Lee Consulting Corporation has the following transactions related to its common shares:

Aug. 3 The Company sold 1,000 of its common shares for $10.00 per share to a small number of people who believed in the company's potential for profit.

20 The company repurchased 100 of its common shares for $12.00 per share from a shareholder who was having financial difficulties.

30 The company sold 100 common shares for $15.00 per share.

Required

1. Journalize the entries related to the transactions.

2. Calculate the ending balance in the Common Shares account.

3. Prepare the statement of shareholders' equity for August 31, 2016. Assume that net income for the period was $67,500.