On December 31, 2024, Jons Company had 1,300,000 shares of \(\$ 5\) par common stock issued and outstanding. At December 31, 2024, stockholders' equity had the amounts listed here.

Transactions during 2025 and other information related to stockholders' equity accounts were as follows.

1. On January 10 , issued at \(\$ 107\) per share 120,000 shares of \(\$ 100\) par value, \(9 \%\) cumulative preferred stock.

2. On February 8, reacquired 15,000 shares of its common stock for \(\$ 11\) per share.

3. On May 9 , declared the yearly cash dividend on preferred stock, payable June 10 , to stockholders of record on May 31.

4. On June 8 , declared a cash dividend of \(\$ 1.20\) per share on the common stock outstanding, payable on July 10 to stockholders of record on July 1 .

5. Net income for 2025 was \(\$ 3,600,000\).

Instructions

a. Record the journal entries that are required for items 1-5 above.

b. Prepare the stockholders' equity section of Jons' balance sheet at December 31, 2025.

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Common Stock Additional Paid-in Capital Retained Earnings $6,500,000 1,800,000 1,200,000