The Owner's Equity section of the balance sheet of Ovlov Corporation on December 31, 2009, was as follows:

The board of directors took the following actions:
December 31, 2010:
1. A 2-for-i stock split of common stock was declared.
2. 12,000 shares of its outstanding preferred stock were purchased by Ovlov at S114 per share.
January 1, 2011:
1. The preferred dividend of $8.00 was declared.
2. A cash dividend of $.15 a share on common stock outstanding on January 1 was declared.
3. A stock dividend of 1/10 of a share was declared on common stock, effective February 1.
February 1, 2011: The dividends declared in January were paid.
Required:
Prepare journal entries to record the transactions.

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$8.00 preferred stock (40,000 shares, par value 3100) Common stock (no par value, 5,000,000 shares issued and outstanding) Retained earnings $ 4,000,000 21,000,000 7,000,000 $32,000,000 Total owner's equity