The stockholders equity section of Day Corporations balance sheet on January 1 follows: Common stock, $10 par value, 200,000 shares authorized, 40,000 shares $400,000 issued, 6,000 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 1,031,000 Less: Treasury stock (6,000 shares) at cost 126,000 Total Stockholders' Equity $905,000 The following transactions affecting stockholders equity occurred during the year: Jan. 8 Issued 10,000 shares of previously unissued common stock for $25 cash per share. Mar. 12 Sold all of the treasury shares for $28 cash per share. June 30 Declared a six percent stock dividend on all outstanding shares of common stock. The market value of the stock was $35 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 $30 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 $192,000.