The shareholders' equity section of Milan Corporation's balance sheet as of December 31, 2021 is as follows:

Shareholders' Equity

Common stock, $5 par value; authorized, 20,000,000 shares;

Issued and outstanding, 400,000 shares $2,000,000

Paid-in capital in excess of par 850,000

Retained earnings 3,000,000

_______________________________________________

$5,850,000

The following events occurred during 2022:

Jan. 5 40,000 shares of authorized and unissued common stock were sold for $8 per share. Milan paid an attorney $8,500 to cover the legal and regulatory costs associated with issuing the common stock.

Jan. 16 Declared a cash dividend of 20 cents per share, payable February 15 to stockholders of record on Feb. 5.

Feb. 5 Record Date of Jan. 16 dividend, determined the shareholders entitled to the Jan. 16^th cash dividend.

Feb. 15 Paid the cash dividend declared on Jan. 16

March 1 A 35% stock dividend was declared and issued. Market value per share is currently $15.

April 1 A two-for-one split was carried out. The par value of the stock was reduced to $2.50 per share. Market value on March 31 was $18 per share.

July 1 A 10% stock dividend was declared and issued. Market value per share is currently $11 per share.

Instructions

Prepare journal entries for the above transactions: