The shareholders' equity section of Rudnicki Corporation contained the following balances as of December 31, 2020:

During 2021, Rudnicki Corporation entered into the following transactions affecting shareholders' equity:
1. On May 13, the company repurchased 50 shares of its common stock in the open market at $20 per share to hold in treasury.
2. On September 26, the company issued 200 shares of its preferred stock at $19 per share.
3. On October 19, the company reissued 30 shares of the stock held in treasury. They sold for $22 per share; all of the shares reissued were purchased prior to May 13 for $12 per share.
4. On December 2, the company declared a cash dividend of $750, Rudnicki Corporation uses a separate dividend account for each type of stock.
5. On December 27, the company paid the dividend declared on December 2.
6. On December 29, the company declared a 2: 1 stock split on the company's common stock.

INSTRUCTIONS:
a. Prepare the necessary entries for each transaction.
b. Assume that Rudnicki Corporation earned net income of $899 during 2021. Prepare the shareholders' equity section as of December 31, 2021.

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Preferred stock (10%, $10 par value) Common stock ($1 par value, 5,000 shares authorized, 3,500 issued, and 400 held in treasury) $2,500 Additional paid-in capital Retained earnings Less: Treasury stock Total shareholders' equity 3,500 4,670* 4,256 (5,750) $9,176