S. corporation was formed in December 2019. The corporate charter authorizes the issuance of 2,000,000 shares of common stock carrying a $1 par value, and 500,000 shares of $5 par value, noncumulative, nonparticipating preferred stock. The following transactions occurred during 2020:

1. On January 2, 1,000,000 shares of the common stock are issued in exchange for cash at an average price of $10 per share.

2. On January 2, all 500,000 shares of preferred stock are issued at $25 per share.

3. On June 30, the corporation reacquires 180,000 shares for the treasury at a price of $12 per share.

4. On July 31, 40,000 treasury shares are reissued at $15 per share.

5. On September 30, 40,000 treasury shares are reissued at $10 per share.

6. On October 1, S. Corporation receives permission to replace its $1 par value common stock (5,000,000 shares authorized, 3,000,000 shares issued, and 2,900,000 shares outstanding) with a new common stock issue having a $.50 par value. Since the new par value is one-half the amount of the old, this represents a 2-for-1 stock split. That is, the shareholders will receive two shares of the $.50 par stock in exchange for each share of the $1 par stock they own. The $1 par stock will be collected and destroyed by the issuing corporation.

7. On December 2, the S. Corporation declares a 2% stock dividend payable on December 28, to shareholders of record on December 14. At the date of declaration, the common stock was selling in the open market at $10 per share. The dividend will result in 116,000 (0.02 5,800,000) additional shares being issued to shareholders.

Prepare journal entries to record these transactions.