Included in the December 31, 2009 Jacobi Company balance sheet was the following stockholders' equity section:
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The company engaged in the following stock transactions during 2010:Jan. 4 Paid the semiannual dividend on the outstanding preferred stock and a $1.60 per share annual dividend on the outstanding common stock. These dividends had been declared on December 1, 2009.
Jan. 5 Issued 500 shares of preferred stock at $110 per share.
Jan. 22 Issued 4,000 shares of common stock at $23 per share.
Apr. 2 Reissued 700 shares of treasury stock at $24 per share.
May 14 Declared a 10% stock dividend on the outstanding common stock, payable on June 29. The common stock is currently selling for $25 per share.
June 4 Declared the semiannual cash dividend on the outstanding preferred stock, payable on July 5.
June 29 Issued the stock dividend declared on May 14.
July 5 Paid the cash dividend declared on June 4.
July 20 Split the common stock two for one and reduced the par value to $2.50 per share.
Aug. 3 Declared a property dividend, payable to common stockholders on September 14. The dividend consists of an investment in 5,000 shares of available for sale Drot Company common stock. The stock had been acquired at $9 per share, but has a carrying value of $6 per share. The stock is currently selling for $4 per share.
Sept. 14 Paid the property dividend declared on August 3.
Dec. 3 Declared the semiannual cash dividend on the outstanding preferred stock and a $0.90 per share annual dividend on the outstanding common stock.
Required:
1. Prepare journal entries to record the preceding transactions.
2. Prepare the December 31, 2010 stockholders' equity section (assume that 2010 net income was$270,000).