Prepare Jornal entries . Summit Corp. is authorized to issue 50,000 shares of $8, cumulative, preferred shares, and an unlimited number of common shares. Prepare Corporate Journal entries during the first year of operations:

Jan 10 Issued 95,000 common shares for $8 per share, cash.

Jan 15 Exchanged 20,000 common shares for equipment with a fair market value of $65,000, the common shares were not being actively traded.

Feb 1 Exchanged 4,500 common shares for $2,500 worth of legal fees incurred during the organization of the corporation.

Mar 5 Issued 8,000 preferred shares for $35 per share, cash.

June 1 Declared a 6% common stock dividend to be distributed June 20 with a Date of Record of June 10. Shares were selling for $10.00 on June 1 and $8.50 on June 20.

June 20 Distributed the stock dividend.

Dec 1 Declared a 2 for 1 stock split

Dec 20 Retired 25,000 common shares paying $5.00 per share, cash