The balance sheet of Investtech Inc. at December 31, 2016, reported 2,000,000 common shares authorized with 250,000 shares issued at an average price of $4.00 each. Retained Earnings had a balance of $700,000. During 2017, the company completed the following selected transactions:

Feb. 15 Repurchased 20,000 of the company's own common shares at $4.00 per share.

Mar. 8 Sold 8,000 common shares for $4.25 per share.

Sep. 28 Declared a 5 percent stock dividend on the 238,000 outstanding common shares to holders of record on October 15, with distribution set for October 31. The market value of Investtech Inc. common shares was $4.50 per share.

Oct. 31 Issued the stock dividend shares.

Nov. 5 Consolidated the common shares 1 for 2 (reverse split); one new common share was issued for every two existing shares held. Prior to the split, the corporation had 249,900 shares issued and outstanding.

Dec. 31 Earned net income of $230,000 during the year.

Required

1. Record the transactions in the general journal. Explanations are not required.

2. Prepare the shareholders' equity section of the balance sheet at December 31, 2017.

3. Calculate the average issue price per common share on December 31, 2017.