The stockholders equity section of Day Corporations balance sheet at January 1 follows:

Common stock, $10 par value, 200,000 shares authorized, 36,000 shares		$360,000
issued, 5,000 shares are in the treasury
Additional paid-in capital
In excess of par value	$315,000
From treasury stock	18,000	333,000
Retained earnings		298,000
		991,000
Less: Treasury stock (5,000 shares) at cost		90,000
Total Stockholders' Equity		$901,000

The following transactions affecting stockholders equity occurred during the year:

Jan.	8	Issued 10,000 shares of previously unissued common stock for $24 cash per share.
Mar.	12	Sold all of the treasury shares for $27cash per share.
June	30	Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $32 per share.
July	10	Issued the stock dividend declared on June 30.
Oct.	7	Acquired 1,500 shares of common stock as treasury stock at $28 cash per share.
Dec.	18	Declared a cash dividend of 90 cents 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 $186,000.