The Stockholders Equity Section of the Balance Sheet for the Davis Corporation has the following balances at December 31, 2018:

Common Stock, $10 par Value, 600,000 shares issued and outstanding $6,000,000

Paid - in Capital in excess of Par - Common Stock $4,000,000

Retained Earnings at 12-31-18 $ 7,800,000

Shares of Davis Corporation are currently selling at $40 per share on the Stock Exchange.

Instructions: Prepare the journal entries for each of the following transactions that occurred:

1. On December 15th, 2018, the company declared a cash dividend of $.35 per share to be paid on January 15th, 2019. (Record both entries)

2. On February 1, 2019, Davis purchases 30,000 shares of its Common stock to hold as Treasury Stock (use the cost method). (selling for $40 on 2-1-19.

3. May 1, 2019 - A Stock dividend of 5% is declared and issued. (Fair Market Value of Stock is now $50 per share.)

4. June 1, 2019 - Davis stock is doing well and selling for $60.00 per share. A 2-for-1 stock split is declared and issued.