The following shareholders' equity accounts are reported byOrioleInc. on January 1:

Common shares (unlimited authorized,157,500issued) $2,520,000

Preferred shares ($4 cumulative, convertible, 100,000 authorized,5,500issued) 412,500

Contributed surplusreacquisition of common shares 31,000

Retained earnings 1,265,000

The following selected transactions occurred during the year:

Feb.11 Issued52,500common shares at $20per share.

Mar.2 Reacquired20,000common shares at $22per share.

June14 Split the common shares 2 for 1 when the common shares were trading at $30per share.

July25 Reacquired430preferred shares at $70per share.

Sept.16 Reacquired52,500common shares for $17per 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 $19per share.

Dec.13 Distributed the stock dividend declared on October 27. The fair value of the common shares on December 13 was $21per share.

1. Prepare journal entries for the transactions.
2. Show how each class of shares will be presented in the shareholders' equity section of the balance sheet at December 31.