Included in the December 31, 2006 Jacobi Company balance sheet was the following stockholders equity section: The

Question:

Included in the December 31, 2006 Jacobi Company was the following stockholders€™ equity section:

Included in the December 31, 2006 Jacobi Company balance sheet

The company engaged in the following stock transactions during 2007:
Jan. 2 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 of 2006.
Jan. 5 Issued 500 shares of preferred stock at $110 per share.
Jan. 23 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.
June 5 Declared the semiannual cash dividend on the outstanding preferred stock, payable on July 5.
June 29 Issued the stock dividend declared on May 15.
July 5 Paid the cash dividend declared on June 5.
July 20 Split the common stock two for one and reduced the par value to $2.50 per share.
Aug. 3 Declared a property dividend, payable to common stockholders on September 14. The dividend consists of an investment in 5,000 shares of available-for-sale Drot Company common stock. The stock had been acquired at $9 per share, but has a carrying value of $6 per share. The stock is currently selling for $4 per share.
Sept. 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, 2007 stockholders€™ equity section (assume that 2007 net income was$270,000).

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...