On December 31, 2021, Jons Company had 1,300,000 shares of $5 par issued and outstanding. At December 31, 2021, stockholders’ equity had the amounts listed here.
Common Stock……………$6,500,000
Additional Paid-in Capital……………1,800,000
Retained Earnings……………1,200,000
Transactions during 2022 and other information related to stockholders’ equity accounts were as follows.
1. On January 10, issued at $107 per share 120,000 shares of $100 par value, 9% cumulative preferred stock.
2. On February 8, reacquired 15,000 shares of its for $11 per share.
3. On May 9, declared the yearly cash on preferred stock, payable June 10, to stockholders of record on May 31.
4. On June 8, declared a cash of $1.20 per share on the outstanding, payable on July 10 to stockholders of record on July 1.
5. Net income for 2022 was $3,600,000.
Instructions
a. Record the journal entries that are required for items 1–5 above.
b. Prepare the stockholders’ equity section of Jons’ at December 31, 2022.
