The stockholders' equity section of Night Corporation's balance sheet at January 1 follows:

Common stock, $5 par value, 300,000 shares authorized, 60,000 shares $300,000

issued, 6,000 shares in treasury

Additional paid-in capital

In excess of par value $480,000

From treasury stock 30,000 510,000

Retained earnings 348,000

1,158,000

Less: Treasury stock (6,000 shares) at cost 138,000

Total Stockholders' Equity $1,020,000

The following transactions affecting stockholders' equity occurred during the year:

Jan. 8 Issued 15,000 shares of previously unissued common stock for $21 cash per share.

Mar. 12 Sold all of the treasury shares for $28 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 $25 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 $26 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

Create journal entries to record the foregoing transactions.

Create statement of stockholders' equity. Net income for the year is $341,000.