Problem 11-03A

On December 31, 2021, Jons Company had 1,300,000 shares of $5 par common stock issued and outstanding. At December 31, 2021, stockholders equity had the amounts listed here.

Common Stock		$6,500,000
Additional Paid-in Capital		1,800,000
Retained Earnings		1,200,000

Transactions during 2022 and other information related to stockholders equity accounts were as follows.

1.		On January 10, issued at $107 per share 120,000 shares of $100 par value, 9% cumulative preferred stock.
2.		On February 8, reacquired 15,000 shares of its common stock for $11 per share.
3.		On May 9, declared the yearly cash dividend on preferred stock, payable June 10, to stockholders of record on May 31.
4.		On June 8, declared a cash dividend of $1.2 per share on the common stock outstanding, payable on July 10, to stockholders of record on July 1.
5.		Net income for 2022 was $3,600,000

Question 1:

Record the journal entries that are required for items 15 above.

Question 2:

Prepare the stockholders equity section of Jonss' balance sheet at December 31, 2022.