Selected Data from the Comparative Balance Sheets of Mock Company

Selected data from the comparative balance sheets of Mock Company as of December 31, Year 1, and Year 2 appear below:
The following transactions occurred during Year 2:
a. March 1, Year 2: The company resold the Treasury shares on the market for $57 per share.
b. June 30, Year 2: The company declared and issued a 10-percent stock dividend at a time when the market price was $63 per share.
c. September 15, Year 2: The company issued additional shares of common stock on the open market for cash.
d. November 16, Year 2: The company issued new preferred shares on the open market for cash.
e. December 31, Year 2: Net income for Year 2 was $195,000. The company declared and paid cash dividends of $72,000 on the last day of the year.

Required:
Prepare journal entries for each of the transactions and events affecting these shareholders' equity accounts during Year 2.

Correct Answer:

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