Included in the December 31, 2012, Jacobi Company balance sheet was the following shareholders' equity section:

The company engaged in the following stock transactions during 2013:
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, 2012.
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.
June 4 Declared the semiannual cash dividend on the outstanding preferred stock, payable on July 5.
29 Issued the stock dividend declared on May 14.
July 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 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, 2013, shareholders' equity section (assume that 2013 net income was $270,000).

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Contributed Capital: Preferred stock, 696, $100 par $200,000 Additional paid-in capital on preferred stock Common stock, $5 par Additional paid-in capital on common stock Total contributed capital 12,000 $ 212,000 $150,000 240,000 390,000 S 602,000 Retained earnings Accumulated other comprehensive income (loss): Unrealized decrease in value of available-for-sale securities Total contributed capital, retained earnings, and accumulated other comprehensive income Less: Treasury stock (1,000 shares of common stock at cost, acquired on 2/3/2012) (41,000) $1,1,000 x, $1,168,000 Total Shareholders' Equity