On January 1 2015, ABC Company reported the following in shareholder's equity:

Preferred Shares, no-par value; $0.70, cumulative; authorized, unlimited shares; issued, 80,000 shares - $386,000

Common Shares, no-par value; authorized shares; issued, 80,000 shares - $642,000

Contributed Capital on retirement of common shares - $14,000

Retained Earnings - $1,250,000

AOCI for foreign exchange gains on foreign subsidiary - $38,000

During 2015, certain shares were reacquired. In accordance with the regulations in ABC's incorporating legislations, all reacquired shares were retired, and transactions are as follows:

January 10 - Bought 7,000 preferred shares for $5.20/share

February 10 - Bought 2,000 common shares for $11.00/share

March 12 - Bought 4,000 preferred shares for $4.00/share

April 25 - Bought 5,000 preferred shares for $6.00/share

June 16 - Bought 8,000 common shares for $7.50/share

Other transactions that occurred during the year:

July 30 - Stock dividend on common shares, 5% declared and distributed. The board of directors agreed to capitalize the dividend at the market value of $7.75/share.

October 15 - The board of directors declared a dividend adequate to pay $1.00/share to all common shareholders, meaning that the board also had to declare the preferred dividend.

Required

1. Prepare journal entries to reflect the above transactions. Show the split between common and preferred dividends in the dividend entries, as appropriate.
2. Prepare the shareholder's equity section of the SFP after reflecting the above transactions. Earnings were $308,200, and total comprehensive income was $351,000, reflecting earnings plus an additional gain of $42,800 on foreign exchange caused by a foreign subsidiary.