The following accounts appear in the ledger for Steel Co. at the beginning of the year.

• Common Stock, $15 par (80,000 shares authorized, 45,000 shares issued)...$675,000
• Paid-In Capital in Excess of Par - Common Stock...$40,000
• Retained Earnings...$22,525,000

Required:

Prepare the journal entries for the following transactions.

• Issued 10,000 shares of common stock at $18, receiving cash.
• Purchased 5,000 shares of treasury common for $16 per share.
• Sold all 5,000 shares of treasury common for $18 per share.
• Declared cash dividends of $0.05 per share of common stock.
• Paid the cash dividends.

Rather than a cash dividend as described in transaction "D" above, create any journal entries associated with declaring and distributing a stock dividend under the following scenario:

• Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share.

• Issues shares of stock for the dividend declared in Part A.