The Wireless Miracle completed the following transactions during 2016:

Jan 16: Declared a cash dividend on the 6%, $105 par noncumulative preferred stock (1,000 shares outstanding). Declared a $0.50 per share dividend on the 100,000 shares of $4 value common stock outstanding. The date of record is January 31, and the payment date is February 15.

Feb 15: Paid the cash dividends. Jun 10: Split common stock 2-for-1.

Jul 30: Declared a 30% stock dividend on the common stock. The market value of the common stock was $12 per share.

Aug 15: Distributed the stock dividend. Oct 26: Purchased 1,000 shares of treasury stock at $8 per share.

Nov 08: Sold 500 shares of treasury stock for $10 per share. Nov 30: Sold 300 shares of treasury stock for $4 per share.

Requirements

1. Record the transactions in General Journal

2. Prepare the Dearborns stockholders equity section of the balance sheet as of December 31, 2016. Assume that Dearborn was authorized to issue 2,000 shares of preferred stock and 400,000 shares of common stock. Both preferred stock and common stock were issued at par. The ending balance of retained earnings as of December 31, 2016, is $1,060,000.