Included in the December $31,2015,$ Jacobi Company balance sheet was the following shareholders$$ equity section:

Jacobi Company

Balance Sheet $($Shareholders$\text{'}$ Equity$)$

December $31,2015$

$1$

Contributed Capital:

$2$

Preferred stock, $6\%,$ $$100$ par

$$200,000\mathrm{.}00$

$3$

Additional paid$-$in capital on preferred stock

$12,000\mathrm{.}00$

$$212,000\mathrm{.}00$

$4$

Common stock, $$5$ par

$$150,000\mathrm{.}00$

$5$

Additional paid$-$in capital on common stock

$240,000\mathrm{.}00$

$390,000\mathrm{.}00$

$6$

Total contributed capital

$$602,000\mathrm{.}00$

$7$

Retained earnings

$627,000\mathrm{.}00$

$8$

Accumulated other comprehensive income $($loss$)$:

$9$

Unrealized decrease in value of available$-$for$-$sale securities

$(41,000\mathrm{.}00)$

$10$

Total contributed capital, retained earnings, and accumulated other comprehensive income

$$1,188,000\mathrm{.}00$

$11$

Less: Treasury stock $(1,000$ shares of common stock at cost$,$ acquired on $2/3/2015)$

$(20,000\mathrm{.}00)$

$12$

Total Shareholders$$ Equity

$$1,168,000\mathrm{.}00$

The company engaged in the following stock transactions during $2016$:

Jan. $4$ Paid the semiannual dividend on the outstanding preferred stock and a $$1\mathrm{.}60$ per share annual dividend on the outstanding common stock. These dividends had been declared on December $1,2015.$

$5$ Issued $500$ shares of preferred stock at $$110$ per share.

$22$ Issued $4,000$ shares of common stock at $$23$ per share.

Apr. $2$ Reissued $700$ shares of treasury stock at $$24$ per share.

May $14$ Declared a $10\%$ stock dividend on the outstanding common stock, payable on June $29.$ The common stock is currently selling for $$25$ per share.

Jun. $4$ Declared the semiannual cash dividend on the outstanding preferred stock, payable on July $5.$

$29$ Issued the stock dividend declared on May $14.$

Jul. $5$ Paid the cash dividend declared on June $4.$

$20$ Split the common stock $2-$for$-1$ and reduced the par value to $$2\mathrm{.}50$ per share.

Aug. $3$ Declared a property dividend, payable to common shareholders on September $14.$ The dividend consists of an available$-$for$-$sale investment in $50$ Drot Company bonds. The bonds had been acquired for $$45,000,$ but have a carrying value of $$30,000.$ The bonds are currently selling for $$20,000.$

Sep. $14$ Paid the property dividend declared on August $3.$

Dec. $3$ Declared the semiannual cash dividend on the outstanding preferred stock and a $$0\mathrm{.}90$ per share annual dividend on the outstanding common stock.

Required:

$1.$ Prepare journal entry to record Dec $3$rd transaction ONLY as all other entries are correct!!!!!! The answer is NOT Debit $$6$k Dividends Payable Prefered & debit Div Pay: Common $$32,400$ with a Retained Earnings credit of $$38,400$

CHART OF ACCOUNTS

Jacobi Company

General Ledger

ASSETS

$111$ Cash

$115$ Investment in Stock

$119$ Allowance for Change in Fair Value of Investment

$121$ Accounts Receivable

$141$ Inventory

$152$ Prepaid Insurance

$181$ Equipment

$198$ Accumulated Depreciation

LIABILITIES

$211$ Accounts Payable

$231$ Salaries Payable

$250$ Unearned Revenue

$261$ Income Taxes Payable

$272$ Property Dividends Payable

$273$ Dividends Payable: Preferred

$274$ Dividends Payable: Common

EQUITY

$305$ Preferred Stock

$311$ Common Stock

$315$ Common Stock to be Distributed

$321$ Additional Paid$-$in Capital on Preferred Stock

$322$ Additional Paid$-$in Capital on Common Stock

$323$ Additional Paid$-$in Capital from Treasury Stock

$324$ Additional Paid$-$in Capital from Stock Dividend

$329$ Unrealized Decrease in Value of Available$-$for$-$Sale Securities

$331$ Retained Earnings

$335$ Treasury Stock

REVENUE

$41$CHART OF ACCOUNTS

Jacobi Company

General Ledger

ASSETS

$111$ Cash

$115$ Investment in Stock

$119$ Allowance for Change in Fair Value of Investment

$121$ Accounts Receivable

$141$ Inventory

$152$ Prepaid Insurance

$181$ Equipment

$198$ Accumulated Depreciation

LIABILITIES

$211$ Accounts Payable

$231$ Salaries Payable

$250$ Unearned Revenue

$261$ Income Taxes Payable

$272$ Property Dividends Payable

$273$ Dividends Payable: Preferred

$274$ Dividends Payable: Common

EQUITY

$305$ Preferred Stock

$311$ Common Stock

$315$ Common Stock to be Distributed

$321$ Additional Paid$-$in Capital on Preferred Stock

$322$ Additional Paid$-$in Capital on Common Stock

$323$ Additional Paid$-$in Capital from Treasury Stock

$324$ Additional Paid$-$in Capital from Stock Dividend

$329$ Unrealized Decrease in Value of Available$-$for$-$Sale Securities

$331$ Retained Earnings

$335$ Treasury Stock

REVENUE

$411$ Sales Rev