The shareholders’ equity section of Rudnicki Corporation contained the following balances as of December 31, 2017:
Preferred stock (10%, $10 par value, cumulative) .................................$1,000
Preferred stock (12%, $10 par value, noncumulative) ............................1,500
Common stock ($1 par value, 5,000 shares authorized, 3,500 issued
and 400 held in treasury) ...........................................................................3,500
Additional paid-in capital ..........................................................................4,670*
Retained earnings .......................................................................................4,256
Less: Treasury stock ..................................................................................(5,750)
Total shareholders’ equity $9,176
*$4,670 = $1,050 (10% preferred stock) + $1,275 (12% preferred stock) + $2,345 (common stock)
During 2018, Rudnicki Corporation entered into the following transactions affecting shareholders’ equity:
1. On May 13, the company repurchased 50 shares of its common stock in the open market at $20 per share.
2. On September 26, the company issued 200 shares of its 10 percent preferred stock at $19 per share.
3. On October 19, the company reissued 30 shares of the stock held in treasury. They sold for $22 per share; all of the shares reissued were purchased prior to May 13 for $12 per share.
4. On December 2, the company declared a cash dividend of $750, which was paid on December 27. The company has not declared a dividend since 2016. (Rudnicki Corporation uses a separate dividend account for each type of stock.)
5. On December 27, the company pays the dividend declared on December 2.
6. On December 29, the company declares a 2:1 stock split on the company’s common stock.

REQUIRED:
a. Prepare the necessary entries for each transaction.
b. Assume that Rudnicki Corporation earned net income of $899 during 2018. Prepare the shareholders’ equity section as of December 31, 2018.