The shareholders equity section of the Kelly Corporation as at December 31, 20x4 was as follows:

Preferred Shares, $5, cumulative, 100,000 shares issued and outstanding	$10,000,000
Common shares, 350,000 shares issued and outstanding	9,800,000
Retained earnings	5,600,000

The following transactions occurred during the year ending December 31, 20x5:

1. March 31 30,000 common shares are issue for total cash proceeds of $1,080,000.
2. June 15 10,000 common shares are repurchased for a total of $380,000
3. June 30 a common stock dividend of $1.00 per common share is declared and payable on July 15.
4. July 15 the common stock dividend is paid
5. December 31 - a common stock dividend of $1.25 per common share is declared and payable on January 15.
6. December 31 the preferred share dividend is declared and payable on January 15.

Required

a. Write all of the journal entries to record the above transactions.

b. Prepare a statement of changes in shareholders equity for the year ended December 31, 20x5. Assume that the net income for the year was $2,900,000.