Included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section: Jacobi Company Balance Sheet (Shareholders' Equity) December 31, 2015 1 Contributed Capital: 2 Preferred stock, 6%, $100 par $200,000.00 3 Additional paid-in capital on preferred stock 12,000.00 $212,000.00 4 Common stock, $5 par $150,000.00 5 Additional paid-in capital on common stock 240,000.00 390,000.00 6 Total contributed capital $602,000.00 7 Retained earnings 627,000.00 8 Accumulated other comprehensive income (loss): 9 Unrealized decrease in value of available-for-sale securities (41,000.00) 10 Total contributed capital, retained earnings, and accumulated other comprehensive income $1,188,000.00 11 Less: Treasury stock (1,000 shares of common stock at cost, acquired on 2/3/2015) (20,000.00) 12 Total Shareholders’ Equity $1,168,000.00 The company engaged in the following stock transactions during 2016: Jan. 4 Paid the semiannual dividend on the outstanding preferred stock and a $1.60 per share annual dividend on the outstanding common stock. These dividends had been declared on December 1, 2015. 5 Issued 500 shares of preferred stock at $110 per share. 22 Issued 4,000 shares of common stock at $23 per share. Apr. 2 Reissued 700 shares of treasury stock at $24 per share. May 14 Declared a 10% stock dividend on the outstanding common stock, payable on June 29. The common stock is currently selling for $25 per share. Jun. 4 Declared the semiannual cash dividend on the outstanding preferred stock, payable on July 5. 29 Issued the stock dividend declared on May 14. Jul. 5 Paid the cash dividend declared on June 4. 20 Split the common stock 2-for-1 and reduced the par value to $2.50 per share. Aug. 3 Declared a property dividend, payable to common shareholders on September 14. The dividend consists of an available-for-sale investment in 50 Drot Company bonds. The bonds had been acquired for $45,000, but have a carrying value of $30,000. The bonds are currently selling for $20,000. Sep. 14 Paid the property dividend declared on August 3. Dec. 3 Declared the semiannual cash dividend on the outstanding preferred stock and a $0.90 per share annual dividend on the outstanding common stock. Required: 1. Prepare journal entries to record the preceding transactions. 2. Prepare the December 31, 2016, shareholders’ equity section (assume that 2016 net income was $270,000). X .