Statement of Shareholders' Equity At the end of 2017, Jeffco Inc. had the following equity accounts and balances:

During 2018, Jeffco engaged in the following transactions involving its equity accounts:

a. Issued 8,000 common shares for \(\$ 35\) per share.

b. Issued 1,000 shares of \(9 \%, \$ 120\) stated value preferred shares at \(\$ 125\) per share.

c. Declared and paid cash dividends of \(\$ 15,000\).

d. Repurchased and cancelled 500 common shares for \(\$ 52\) per share.
\section*{Required:}
1. Prepare the journal entries for \(a\) through \(d\).
2. Assume that 2018 net income was \(\$ 89,600\). Prepare a partial statement of financial position showing only the shareholders' equity section at December 31, 2018.
\section*{Problem

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Common shares, no par (175,000 shares issued and outstanding) Retained earnings $1,926,400 310,000