The following shareholders' equity accounts are reported by Branch Inc. on January 1:

Record stock dividends, splits, and reacquisition of shares. Report balances in shareholders' equity.

Common shares (unlimited authorized, 150,000 issued)	$2,400,000
Preferred shares ($4 cumulative, convertible, 100,000 authorized, 5,000 issued)	375,000
Contributed surplusreacquisition of common shares	30,000
Retained earnings	1,275,000

The following selected transactions occurred during the year:

Feb.	11	Issued 50,000 common shares at $20 per share.
Mar.	2	Reacquired 20,000 common shares at $22 per share.
June	14	Split the common shares 2 for 1 when the common shares were trading at $30 per share.
July	25	Reacquired 500 preferred shares at $70 per share.
Sept.	16	Reacquired 50,000 common shares for $17 per share.
Oct.	27	Declared a 5% common stock dividend distributable on December 13 to shareholders of record on November 24. The fair value of the common shares on October 27 was $19 per share.
Dec.	13	Distributed the stock dividend declared on October 27. The fair value of the common shares on December 13 was $21 per share.

Instructions

a. Prepare journal entries for the transactions.

b. Show how each class of shares will be presented in the shareholders' equity section of the balance sheet at December 31.