Sudan Enterprises Inc. reported the following shareholder's equity at December 31, 2019:

Contributed Capital

Preferred shares, $ 1, no par value, 100,000 shares authorized, cumulative,

callable at $ 107 plus dividends in arrears;

issued and outstanding, 20,000 shares........................................................... $ 2,040,000

Common shares, no par, 100,000 shares authorized,

80,000 issued and outstanding....................................................................... 640,000

Contributed surplus (retirement of common shares).............................................. 120,000

Retained earnings................................................................................................. 1,600,000

The following transactions took place in 2020:

Jan 20....Redeemed 1,000 preferred shares at the call price. There were no dividends in arrears.

Jan 28....Declared $ 100,000 in dividends. Use separate accounts for each class of dividends.

Feb 28....Retired 8,000 common shares at $ 12 per share.

Mar 2.....Declared and distributed a 3% common stock dividend. The market value of the shares at that time was $ 11.50.

Instructions

Prepare journal entries for the 2020 transactions.