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

Common stock, $6 par value, 300,000 shares authorized, 60,000 shares		360,000
issued, 6,000 shares in treasury
Additional paid-in capital
In excess of par value	600,000
From treasury stock	37,500	637,500
Retained earnings		435,000
		1,432,500
Less: Treasury stock (6,000 shares) at cost		172,500
Total Stockholders Equity		1,260,000

The following transactions affecting stockholders equity occurred during the year:

Jan.	8	Issued 15,000 shares of previously unissued common stock for $26 cash per share.
Mar.	12	Sold all of the treasury shares for $35 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 $31 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 $33 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 $426,250.

• Journal Entries
• Statement of Stockholders' Equity

General Journal
Date	Description	Debit	Credit
Jan.8	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	Paid-in-Capital in Excess of Par Value	Answer	Answer
	Issued shares of common stock.
Mar.12	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	Paid-in-Capital from Treasury Stock	Answer	Answer
	Sold shares of treasury stock.
Jun.30	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	Paid-in-Capital in Excess of Par Value	Answer	Answer
	Declared stock dividend.
Jul.10	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	Issued shares of common stock declared as dividend.
Oct.7	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	Purchased shares of common stock for treasury.
Dec.18	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	Declared cash dividend.
Dec.31	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	To close the income summary account.
Dec.31	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	Stock dividends	Answer	Answer
	AnswerCashCommon StockPaid-in-Capital in Excess of Par ValueTreasury StockPaid-in-Capital from Treasury StockStock DividendsStock Dividend DistributableCash DividendsDividends PayableIncome SummaryRetained earnings	Answer	Answer
	To close the dividend accounts.