Included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section:Jacobi CompanyBalance Sheet (Shareholders' Equity)December 31, 20151Contrib

Included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section:

Jacobi Company

Balance Sheet (Shareholders' Equity)

December 31, 2015


1	Contributed Capital:
2	Preferred stock, 6%, $100 par	$200,000.00
3	Additional paid-in capital on preferred stock	12,000.00	$212,000.00
4	Common stock, $5 par	$150,000.00
5	Additional paid-in capital on common stock	240,000.00	390,000.00
6	Total contributed capital		$602,000.00
7	Retained earnings		627,000.00
8	Accumulated other comprehensive income (loss):
9	Unrealized decrease in value of available-for-sale securities		(41,000.00)
10	Total contributed capital, retained earnings, and accumulated other comprehensive income		$1,188,000.00
11	Less: Treasury stock (1,000 shares of common stock at cost, acquired on 2/3/2015)		(20,000.00)
12	Total Shareholders’ Equity		$1,168,000.00

The company engaged in the following stock transactions during 2016:


Jan.		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, 2015.
		Issued 500 shares of preferred stock at $110 per share.
	22	Issued 4,000 shares of common stock at $23 per share.
Apr.		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.
Jun.		Declared the semiannual cash dividend on the outstanding preferred stock, payable on July 5.
	29	Issued the stock dividend declared on May 14.
Jul.		Paid the cash dividend declared on June 4.
	20	Split the common stock 2-for-1 and reduced the par value to $2.50 per share.
Aug.		Declared a property dividend, payable to common shareholders on September 14. The dividend consists of an available-for-sale investment in 50 Drot Company bonds. The bonds had been acquired for $45,000, but have a carrying value of $30,000. The bonds are currently selling for $20,000.
Sep.	14	Paid the property dividend declared on August 3.
Dec.		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, 2016, shareholders’ equity section (assume that 2016 net income was $270,000).