The stockholders’ equity accounts of Sigma Corporation on January 1, 2010, were as follows.
Preferred Stock (8%, $100 par noncumulative, 5,400 shares authorized) $324,000
Common Stock ($5 stated value, 303,000 shares authorized) 1,090,000
Paid in Capital in Excess of Par Value Preferred Stock 18,570
Paid in Capital in Excess of Stated Value Common Stock 482,820
Retained Earnings 692,430
Treasury Stock Common (5,400 shares) 43,200
During 2010 the corporation had these transactions and events pertaining to its stockholders’ equity.
Feb. 1 Issued 5,400 shares of common stock for $32,400.
Mar. 20 Purchased 1,130 additional shares of common treasury stock at $10 per share.
Oct. 1 Declared a 8% cash dividend on preferred stock, payable November 1.
Nov. 1 Paid the dividend declared on October 1.
Dec. 1 Declared a $0.80 per share cash dividend to common stockholders of record on December 15, payable December 31, 2010.
Dec. 31 Determined that net income for the year was $281,483. Paid the dividend declared on December 1.
Journalize the transactions. (Include entries to close net income to Retained Earnings. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)