Halborn manufacturing Co. completed the following transactions during 2016:

?Jan 16 Declared a cash dividend on the 5%, $105 par noncumulative preferred stock (900 shares outstanding). Declared a $0.55 per share dividend on the 90,000 shares of $8 par value common stock outstanding. The date of record is January 31, and the payment date is February 15

Feb. 15 Paid the cash dividends.

Jun. 10 Split common stock 2-for-1.

Jul. 30 Declared a 40% stock dividend on the common stock. The market value of the common stock was $12 per share.

Aug. 15 distributed the stock dividend

Oct. 26 Purchased 8,000 shares of treasury stock at $9 per share.

Nov. 8 Sold 4,000 shares of treasury stock for $10 per share.

Nov. 30 Sold 1,400 shares of treasury stock for 5$ per share.

Requirements

1. Record the transactions in Halborn's general journal.

2. Prepare the Halborn's stockholders' equity section of the balance sheet as of December 31, 2016. Assume that Halborn was authorized to issue 1,800 shares of preferred stock and 500,00 shares of common stock. Both preferred stock and common stock were issued at par. The ending balance of retained earnings as of December 31, 2016, is $2,090,000.