2. Han Company reported the following amounts in the stockholders' equity section of its December 31, 2015, balance sheet: Preferred stock, 8%, $200 par, 10,000 shares authorized, $800,000 4,000 shares issued and outstanding Common stock, $5 par, 100,000 shares authorized, 100,000 20,000 shares issued and outstanding Additional paid-in capital Retained earnings Total Stockholders' Equity 300,000 400,000 $1,600,000 During 2016, Han took part in the following transactions concerning stockholders' equity: 1. Paid the annual 2015 S15 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2015 Purchased 1,000 shares of its own outstanding common stock for $50 per share. Han uses the cost method. Reissued 500 treasury shares for land valued at $30,000 Issued 1,000 shares of preferred stock at $220 per share. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $60 per share. Issued the stock dividend. Declared the annual 2016 $16 per share dividend on preferred stock and the $4 per share dividend on common stock. These dividends are payable in 2016. 2. 3. 4. 5. 6. 7. Instructions (a) Prepare journal entries to record the transactions described above. (5 points (b) Prepare the December 31, 2016, stockholders' equity section. Assume Han's 2016 net income was 300,000. (10 points)