Stockholders' Equity Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows Common stock, $4 par value, 300,000 shares authorized, 60,000 shares 240,000 issued, 6,000 shares in treasury Additional paid in capital In excess of par value 360,000 From treasury stock 22,500 382,500 Retained earnings 261,000 883,500 Less Treasury stock (6,000 shares) at cost 103,500 Total Stockholders Equity 780,000 The following transactions affecting stockholders equity occurred during the year Jan 8 Issued 15,000 shares of previously unissued common stock for $16 cash per share Mar 12 Sold all of the treasury shares for $21 cash per share June 30 Declared a five percent stock dividend on all outstanding shares of common stock The market value of the stock was $19 per share July 10 Issued the stock dividend declared on June 30 Oct 7 Acquired 2,500 shares of common stock as treasury stock at $20 cash per share Dec 18 Declared a cash dividend of $1 00 per outstanding common share, payable on January 9 to stockholders of record on December 31 Required a Prepare journal entries to record the foregoing transactions b Prepare a statement of stockholders equity Net income for the year is $255,750

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Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $4 par value, 300,000 shares

Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows:

Common stock, $4 par value, 300,000 shares authorized, 60,000 shares		240,000
issued, 6,000 shares in treasury
Additional paid-in capital
In excess of par value	360,000
From treasury stock	22,500	382,500
Retained earnings		261,000
		883,500
Less: Treasury stock (6,000 shares) at cost		103,500
Total Stockholders Equity		780,000

The following transactions affecting stockholders equity occurred during the year:

Jan.	8	Issued 15,000 shares of previously unissued common stock for $16 cash per share.
Mar.	12	Sold all of the treasury shares for $21 cash per share.
June	30	Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $19 per share.
July	10	Issued the stock dividend declared on June 30.
Oct.	7	Acquired 2,500 shares of common stock as treasury stock at $20 cash per share.
Dec.	18	Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31.

Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of stockholders equity. Net income for the year is $255,750.