Question

January 2	Issued an additional 10,000 shares of $1 par common stock for $10 per share.
January 6	Declared a cash dividend on 5,000 shares of 5% $4 par preferred stock and a $.20 per share dividend on 40,000 shares of common stock outstanding.
January 15	The date of record for January 5 cash dividend declaration.
January 20	Paid the cash dividend declared on January 5.
March 15	Declared a 2-for-1 stock split by calling in the 40,000 shares of $1 par common stock and issuing new stock in its place.
April 10	Declared and distributed a 10% stock dividend on the common stock when the market value was $12 per share.
June 14	Purchased 1,000 shares of common stock for the treasury for $13 per share.
December 22	Sold 500 treasury shares for $15 per share.

Dan's Dependable Delivery
General Journal					Page  1
Date		Account	Post   Ref.	Debit	Credit
2-Jan		Cash (10,000*$10)		100,000
		Common Stock			10,000
		Paid-in Capital in Excess of Par for Common Stock			90,000
6-Jan		Retained Earnings		8,000
		Dividends Payable-common stock			8,000
6-Jan		Reatined Earnings		1,000
		Dividends Payable-preferred stock			1,000
15-Jan		No Journal Entry
20-Jan		Dividends Payable-common stock		8,000
		Cash			8,000
20-Jan		Dividends Payable-preferred stock		1,000
		Cash			1,000
15-Mar		Before Stcok Split		40,000		Before stock split: 40,000 shares * $1 = $40,000 total stock value
		After Stock Split			40,000	After Stock split: 80,000 shares * .50 = $40,000 total stock value
10-Apr		Retained Earnings
		Common Stock
14-Jun		Treasury Stock		13,000
		Cash			13,000
22-Dec		Cash		7,500
		Treasury Stock			5,000
		Paid-in Capital for Treasury Stock			2,500