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

Jacobi Company Balance Sheet (Shareholders' Equity) December 31, 2015

1 Contributed Capital:

2 Preferred stock, 6%, $100 par $200,000.00

3 Additional paid-in capital on preferred stock 12,000.00 $212,000.00

4 Common stock, $5 par $150,000.00

5 Additional paid-in capital on common stock 240,000.00 390,000.00

6 Total contributed capital $602,000.00

7 Retained earnings 627,000.00

8 Accumulated other comprehensive income (loss):

9 Unrealized decrease in value of available-for-sale securities (41,000.00)

10 Total contributed capital, retained earnings, and accumulated other comprehensive income $1,188,000.00

11 Less: Treasury stock (1,000 shares of common stock at cost, acquired on 2/3/2015) (20,000.00)

12 Total Shareholders Equity $1,168,000.00

The company engaged in the following stock transactions during 2016:

Jan. 4 Paid the semiannual dividend on the outstanding preferred stock and a $1.60 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 $2.50 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 $0.90 per share annual dividend on the outstanding common stock.

Required:

1. Prepare journal entries to record the preceding transactions.

2. Prepare the December 31, 2016, shareholders equity section (assume that 2016 net income was $270,000).