Problem 13-5A Porto Bay Corporation manufactures and distributes leisure clothing. Selected transactions completed by Porto Bay during the current fiscal year are as follows:

Jan. 10. Split the common stock 4 for 1 and reduced the par from $100 to $25 per share. After the split, there were 500,000 common shares outstanding.

Mar. 1. Declared semiannual dividends of $1.20 on 80,000 shares of preferred stock and $0.24 on the 500,000 shares of $25 par common stock to stockholders of record on March 31, payable on April 30.

Apr. 30. Paid the cash dividends.

July 9. Purchased 75,000 shares of the corporation s own common stock at $26, recording the stock at cost.

Aug. 29. Sold 40,000 shares of treasury stock at $32, receiving cash.

Sept. 1. Declared semiannual dividends of $1.20 on the preferred stock and $0.15 on the common stock (before the stock dividend). In addition, a 1% common stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimated at $30.

Oct. 31. Paid the cash dividends and issued the certificates for the common stock dividend.


Journalize the transactions.