Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: 480,000 Common stock, $8 par value, 300,000 shares authorized, 60,000 shares issued, 6,000 shares in treasury Additional paid-in capital In excess of par value From treasury stock Retained earnings 720,000 45,000 765,000 522,000 1,767,000 207,000 1,560,000 Less: Treasury stock (6,000 shares) at cost Total Stockholders Equity The following transactions affecting stockholdersTM equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $31 cash per share. Mar. 12 Sold all of the treasury shares for $42 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $37 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $39 cash per share. Dec. 18 Declared a cash dividend of $1.00 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 $511,500. Journal Entries Statement of Stockholders' Equity General Journal Description Date Debit Credit Jan.8 Paid-in-Capital in Excess of Par Value Issued shares of common stock. Mar.12 Paid-in-Capital from Treasury Stock Sold shares of treasury stock. Jun.30 Paid-in-Capital in Excess of Par Value Declared stock dividend. Jul. 10 Issued shares of common stock declared as dividend. Oct.7 Purchased shares of common stock for treasury. Mar.12 Paid-in-Capital from Treasury Stock Sold shares of treasury stock. Jun.30 Paid-in-Capital in Excess of Par Value Declared stock dividend. Jul. 10 Issued shares of common stock declared as dividend. Oct.7 Purchased shares of common stock for treasury. Dec. 18 Declared cash dividend. Dec.31 To close the income summary account. Dec.31 Stock dividends To close the dividend accounts. Note: Use negative signs with your answers when appropriate (reduction to retained earnings, acquired treasury stock and treasury stock balances). Night 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 Common shares issued Treasury shares sold Stock Dividends Issued Treasury shares acquired Cash Dividends Declared Net Income Balance, December 31 $ $ $ ta $ $ $