3.)

Stockholders Equity: Transactions and Statement

The stockholders equity section of Day Corporations balance sheet at January 1 follows:

Common stock, $10 par value, 200,000 shares authorized, 36,000 shares		$360,000
issued, 5,000 shares are in the treasury
Additional paid-in capital
In excess of par value	$315,000
From treasury stock	18,000	333,000
Retained earnings		298,000
		991,000
Less: Treasury stock (5,000 shares) at cost		90,000
Total Stockholders' Equity		$901,000

The following transactions affecting stockholders equity occurred during the year:

Jan.	8	Issued 10,000 shares of previously unissued common stock for $24 cash per share.
Mar.	12	Sold all of the treasury shares for $27cash per share.
June	30	Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $32 per share.
July	10	Issued the stock dividend declared on June 30.
Oct.	7	Acquired 1,500 shares of common stock as treasury stock at $28 cash per share.
Dec.	18	Declared a cash dividend of 90 cents per outstanding common share, payable on January 9 to stockholders of record on December 31.

Required

a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of stockholders' equity. Net income for the year is $186,000.

General Journal Description Debit Credit Date Jan.08 0 $ 0 0 0 0 0 Paid-in-Capital in Excess of Par Value Issued shares of common stock. Mar.12 0 0 0 0 0 0 Paid-in-Capital from Treasury Stock Sold shares of treasury stock. Jun.30 0 > 0 0 0 0 0 Paid-in-Capital in Excess of Par Value Declared stock dividend. Jul.10 0 0 > 0 0 Issued shares of common stock declared as dividend. Oct.07 0 0 0 0 Purchased shares of common stock for treasury. Dec. 18 0 0 0 0 Declared cash dividend. General Journal Description Debit Credit Date Jan.08 $ 0 0 $ 0 0 0 0 0 0 Cash Common Stock Paid-in-Capital in Excess of Par Value Mar.12 Treasury Stock Paid-in-Capital from Treasury Stock Stock Dividends Stock Dividend Distributable Cash Dividends Jun.30 Dividends Payable 0 0 0 0 0 0 0 0 0 0 Paid-in-Capital in Excess of Par Value Declared stock dividend. Jul. 10 0 0 0 0 Issued shares of common stock declared as dividend. Oct.07 0 0 > 0 0 Purchased shares of common stock for treasury. Dec. 18 0 0 0 0 Declared cash dividend. Journal Entries Statement of Stockholders' Equity Note: Use negative signs with your answers when appropriate (reduction to retained earnings, acquired treasury stock and treasury stock balances). DAY CORPORATION Statement of Stockholders' Equity For Year Ended December 31 Paid-in-Capital Common Paid-in-Capital from Retained Treasury Stock in Excess of Par Treasury Stock Earnings Stock Total Balance, January 1 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 Common shares issued 0 0 O Treasury shares sold 0 0 Stock Dividends Issued 0 0 0 O Treasury shares acquired 0 0 0 Cash Dividends Declared 0 0 0 O O O O O O O O O O O O O O O O O O O O O O OO O O O O O O O O Net Income 0 0 0 0 olo Balance, December 31 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Please answer all parts of the