2. Tamara Corporation has 5,000 shares of $10 par value common stock outstanding and retained earnings of $97,000. The company declares a cash dividend of $2 per share and an 8% stock dividend. The market price of the stock at the declaration date is $24 per share.

REQUIRED

1. Give the general journal entries for (1) the declaration of dividends and (2) the payment (or issuance) of the dividends.

3. Deborah Corporation had the following Treasury stock transactions during May 2017. Please record these transactions in journal form.

May 5 Purchased 800 shares of its own $2 par value for $20

per share the current market price.

May 17 Sold 300 shares of the treasury stock purchased on

May 5 for $22 per share.

May 21 Sold 200 shares of the treasury stock purchased on

May 5 for $20 per share.

May 28 Sold the remaining shares of the treasury stock

purchased on May 5 for $19 per share.