What I need help understanding is at the bottom of this but for you to have a better understanding of what the problem is my homework question is...

The stockholders' equity accounts of Riverbed Corp on January 1, 2017, were as follows.

Preferred Stock (7%, $100par noncumulative,4,350shares authorized)$261,000

Common Stock ($5stated value,291,000shares authorized)1,212,500

Paid-in Capital in Excess of Par ValuePreferred Stock13,050

Paid-in Capital in Excess of Stated ValueCommon Stock465,600

Retained Earnings710,000

Treasury Stock (4,350common shares)34,800

During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity.

Feb.1Issued4,670shares of common stock for $28,020.

Mar.20Purchased2,000additional shares of common treasury stock at $8per share.

Oct.1Declared a7% cash dividend on preferred stock, payable November 1.

Nov.1Paid the dividend declared on October 1.

Dec.1Declared a $0.70per share cash dividend to common stockholders of record on December 15, payable December 31, 2017.

Dec.31Determined that net income for the year was $280,400. Paid the dividend declared on December 1.

I have to journalize these entires, and I understand all entries but a few.

For Dec1, I'm unsure of the account for the credit, as well as the calculations to solve.

And the last two entries for Dec 31

I know the accounts are

Retained Earnings

Cash Dividends

Dividends Payable

Cash