Retained Earnings: Transactions and Statement

The stockholders equity accounts of Rayburn Corporation as of January 1 appear below:

Common stock, $5 par value, 400,000 shares authorized;
160,000 shares issued and outstanding	$800,000
Paid-in capital in excess of par value	920,000
Retained earnings	513,000

During the year, the following transactions occurred:

June	7	Declared a 10 percent stock dividend; market value of the common stock was $11 per share.
June	28	Issued the stock dividend declared on June 7.
Dec.	5	Declared a cash dividend of $1.25 per share.
Dec.	26	Paid the cash dividend declared on December 5.

Required

a. Prepare journal entries to record the foregoing transactions.