Use the statement of stockholders€™ equity in Exhibit 10-8 to answer the following questions:
1. Make journal entries to record the declaration and payment of cash dividends during 2012.
2. How much cash did the issuance of common stock bring in during 2012?
3. What was the cost of the treasury stock that was purchased during 2012? What was the cost of the treasury stock that was sold during the year? For how much was the treasury stock sold during 2012?
in Exhibit 10-8

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Example Company Statement of Stockholders' Equity Year Ended December 31, 2012 Additional Retaine Common Stock Paid-in CapitalEarnings Trasury StockTotal Balance, December 31, 2011 Issuance of Stock Net Income Cash Dividends Stock Dividends Purchase of Treasury Stock Sale of Treasury Stock Balance, December 31, 2012 $120,000$190,000 $160,000 $(25,000) $445,000 110,000 66,000 (40,000) 20,000 90,000 66,000 (40,000) 28,000(41,000) 13,00028 18,000) (18.000) 19,000 $(34,000) $582,000 9,000 $153.000 $318.000$145,000