Evaluate the situation below, determine the journal entries (if any) that need to be booked as a result. This might require judgment on your part as to what method to use; there is no right or wrong answer as long as you provide valid reasons for your choice.

General information about ABC company:

Incremental borrowing rate 4.3%

Number of common shares authorized 530,000

Number of common shares issued and outstanding as of the end of last year 53,000

Par value of common stock $0.05

Tax rate 20%

ABC company engaged in the following stock transactions during the year:

• April 30: Repurchased 5,000 shares at $29 per share

• July 31: Issued a 100% stock dividend

• November 1: Reissued 2,000 shares at $38 per share

For all share repurchases and reissuances, ABC company simply booked the cash received against the treasury stock account (improperly). No entry was booked for the stock dividend.