Mission Hills Company reported the following amounts in the stockholders equity of its December 31, 2015, balance sheet.

Preferred stock, 8%, $100 par (10,000 shares authorized, 2,000 shares issued	$200,000
Common stock, $5 par (100,000 shares authorized, 20,000 shares issues	100,000
Additional paid-in capital	125,000
Retained earnings	450,000
Total	4875,000

During 2016, Mission Hills took part in the following transactions concerning stockholders equity.

Paid the annual 2015 $8 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 2,700 shares of its own outstanding common stock for $40 per share.Mission Hills uses the cost method.

Reissued 700 treasury shares for land valued at $30,000.

Issued 500 shares of preferred stock at $105 per share.

Declared and issued a 10% stock dividend on the outstanding common stock when the stock is selling for $45 per share.

Declared the annual 2016 $8 per share on the preferred stock and $2 per share dividend on common stock.These dividends are payable in 2017.

Required:

Prepare journal entries to record the transactions described above.

Prepare the December 31, 2016, stockholders equity section.Assume 2016 net income was $330,000.