Response to the following problem:
Blitz Power Tongs Inc. received a charter that authorized it to issue an unlimited number of common shares.
The following transactions were completed during 2016:
Jan. 5 Issued 10 common shares for a total of $150 cash.
12 Exchanged 50 shares of common shares for assets listed at their fair values: machinery - $100; building - $100; land - $50.
Feb. 28 Declared a 10% share dividend. Market value is $7 per share. Net income to date is $60.
Mar. 15 Issued the share dividend.
Dec. 31 Closed the 2016 net income of $200 from the Income Summary account in the general ledger to the Retained Earnings account.
Dec. 31 Declared a $1 per share cash dividend.
Required
1. Prepare journal entries for the 2016 transactions, including closing entries.
2. Prepare the shareholders' equity section of the balance sheet at
a. January 31, 2016
b. February 28, 2016
c. December 31, 2016.