As of January 1, 2019, the equity section of BC Marine Co.’s balance sheet contained the following:

■ On May 1, 2019, the company spent $500,000 to repurchase 100,000 common shares. These shares were cancelled immediately.
■ On July 15, 2019, the company repurchased and cancelled 1,000 preferred shares at $20 per share.
■ On November 1, 2019, the company declared and paid the annual cash dividends on the preferred shares. On the same day, the company issued a 10% stock dividend on common shares. BC Marine’s stock traded at $6 per share after the dividend.

Required:

Assume that BC Marine follows the guidance in ASPE pertaining to accounting for equity transactions. Record the journal entries for the above transactions occurring in 2019.

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Common shares, 10,000,000 authorized, 2,000,000 issued and outstanding Contributed surplus-from repurchase and cancellation of common shares Contributed surplus-expired options on common shares Preferred shares, $2 cumulative dividend, 5,000,000 authorized, 50,000 issued and outstanding Retained earnings Total shareholders' equity $5,000,000 150,000 200,000 1,050,000 2,400,000 $8,800,000