Court Casuals has the following beginning balances in its stockholders' equity accounts on January 1, 2018: Common Stock, $80,000; Additional Paid-in Capital, $4,000,000; and Retained Earnings, $2,000,000. Net income for the year ended December 31, 2018, is $600,000. Court Casuals has the following transactions affecting stockholders' equity in 2018:

May 18 Issues 21,000 additional shares of $1 par value common stock for $50 per share.

May 31 Repurchases 3,500 shares of treasury stock for $40 per share.

July 1Declares a cash dividend of $2 per share to all stockholders of record on July 15.Hint:Dividends are not paid on treasury stock.

July 31 Pays the cash dividend declared on July 1.

August 10 Reissues 2,250 shares of treasury stock purchased on May 31 for $50 per share.