Timpano Communication Inc. had the following shareholders' equity on January 1, 2014:

Preferred shares, $2.00, cumulative (1 year in arrears),

liquidation price of $20, 100,000 shares authorized,

15,000 shares issued and outstanding.......................................$240,000

Common shares, unlimited number of shares

authorized, 25,000 shares issued and outstanding...........................200,000

Total contributed capital........................................................440,000

Retained earnings...............................................................512,000

Total shareholders' equity....................................................$952,000

The following transactions took place during 2014:

Jan. 14 Declared a $90,000 cash dividend, payable on March 1 to the shareholders of record on February 1. Indicate the amount payable to each class of shareholder.

Feb. 28 Issued 10,000 common shares for $6.00 per share.

Mar. 1 Paid the cash dividend declared on January 14.

Apr. 1 Declared a 10 percent stock dividend on the common shares, distributable on May 2 to the shareholders of record on April 15. The market value of the shares was $6.40 per share.

May 2 Distributed the stock dividend declared on April 1.

Jul. 4 Repurchased 3,000 of the company's own common shares at $7.00 per share.

Sept. 2 Issued 2,500 common shares for $7.50 per share.

Nov. 2 Split the common shares 2 for 1.

Dec. 31 Reported net income of $250,000. Closed the Income Summary account.

Required

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

2. Prepare the statement of shareholders' equity for the year ended December 31, 2014.