Waterway Company reported the following amounts in the stockholders equity section of its December 31, 2016, balance sheet.

Preferred stock, 10%, $100 par (10,000 shares authorized, 1,800 shares issued)		$180,000
Common stock, $5 par (101,000 shares authorized, 20,200 shares issued)		101,000
Additional paid-in capital		119,000
Retained earnings		447,000
Total		$847,000

During 2017, Waterway took part in the following transactions concerning stockholders equity.

1.		Paid the annual 2016 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016.
2.		Purchased 1,500 shares of its own outstanding common stock for $37 per share. Waterway uses the cost method.
3.		Reissued 700 treasury shares for land valued at $28,400.
4.		Issued 500 shares of preferred stock at $106 per share.
5.		Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $48 per share.
6.		Issued the stock dividend.
7.		Declared the annual 2017 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018.

Prepare journal entries to record the transactions described above.

Prepare the December 31, 2017, stockholders equity section. Assume 2017 net income was $325,000.