Instructions Selected transactions completed by Primo Discount Corporation during the current fiscal year are as follows: Jan. 9 Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the Feb. 28 split, there were 1,200,000 common shares outstanding. Purchased 40,000 shares of the corporation's own common stock at $28, recording the stock at cost. Declared semiannual dividends of $0.80 per share on 75,000 shares of preferred stock and $0.12 per share on the common stock to stockholders of record on June 1, payable on July 10. May 1 Jul. Sep. Oct. 10 7 1 Paid the cash dividends. Sold 30,000 shares of treasury stock at $34, receiving cash. Declared semiannual dividends of $0.80 per share on the preferred stock and $0.12 per share on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36. Paid the cash dividends and issued the certificates for the common stock dividend. Dec. 1 Journalize the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL Score: 204/225 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. CREDIT ASSETS LIABILITIES EQUITY Feb. 28 DEBIT 1,120,000.00 Treasury Stock Cash 1,120,000.00 May 1 Cash Dividends 199,200.00 Cash Dividends Payable 199,200.00 Cash Dividends Payable 1,020,000.00 199,200.00 Jul. 10 Cash Dividends Payable Cash 199,200.00 1 " Sep. 7Cash 1,020,000.00 Treasury Stock 840,000.00 Paid-In Capital from Sale of Treasury Stock 180,000.00 202,800.00 Oct. 1 Cash Dividends Cash Dividends Payable Oct. 1 Stock Dividends 202,800.00 856,800.00 Stock Dividends Distributable 595,000.00 Paid-In Capital in Excess of Par-Common Stock 261,800.00 Dec. 1 Stock Dividends Distributable 595,000.000 Common Stock 595,000.00