January 1, 2017, the stockholders equity section of Jayhawk Corporations balance sheet

showed the following

Preferred stock, $100 par value, 5%, 50,000 shares authorized,

5,000 shares issued and outstanding

$500,000

Paid in capital in excess of par, Preferred Stock

100,000

Common stock, $3 par value, 500,000 shares authorized,

20,000 shares issued and outstanding

60,000

Paid in capital in excess of par, Common Stock

250,000

Total contributed Capital

910,000

Retained Earnings

320,000

Total Stockholders' Equity

$1,230,000

During the year, 2017, the following transactions occurred:

February 2

Issued 600 shares of common stock for $16 per share.

April 15

Issued 1,000 shares of preferred stock for $125 per share.

September 15 Declared dividends of $60,000 to be paid on October 31, 2017.

October 31

Paid the dividends declared on September 15.

Required (10 points):

a. Prepare journal entries to record the above transactions.

b. Assuming that net income was $93,000, prepare the stockholders equity section of the

balance sheet at December 31, 2017.