Question 2: (4 marks each transaction 1 mark)

On January 1, 2016, Heeba Corporation had 30,000 shares of $5 par value common stock issued and outstanding. During the year, the following transactions occurred:

Mar. 1 Issued 20,000 shares of common stock for $200,000.

June 1 Declared a cash dividend of $ 0.5 per share to stockholders.

Dec. 1 Purchased 10,000 shares of common stock for the treasury for $10 per share.

Dec. 15 Declared a cash dividend on outstanding shares of $1.25 per share to stockholders of record on December 31.

Instructions: Prepare journal entries to record the above transactions for Heeba corporation.