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

Common stock, $3 par value, 300,000 shares authorized, 60,000 shares		180,000
issued, 6,000 shares in treasury
Additional paid-in capital
In excess of par value	240,000
From treasury stock	15,000	255,000
Retained earnings		174,000
		609,000
Less: Treasury stock (6,000 shares) at cost		69,000
Total Stockholders Equity		540,000

The following transactions affecting stockholders equity occurred during the year:

Jan.	8	Issued 15,000 shares of previously unissued common stock for $10 cash per share.
Mar.	12	Sold all of the treasury shares for $14 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 $12 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 $13 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 a. Prepare journal entries to record the foregoing transactions.

b. Prepare a statement of stockholders equity. Net income for the year is $170,500. Use negative signs with your answers when appropriate (reduction to retained earnings, acquired treasury stock and treasury stock balances).