Journalize the transactions.

Jan.

9

Split the common stock

The stock outstanding when a corporation has issued only one class of stock.

 3 for 1 and reduced the par

A dollar amount assigned to each share of stock.

 from $75 to $25 per share. After the split, there were 1,200,000 common shares outstanding.

Feb.

28

Purchased 40,000 shares of the corporation’s own common stock at $28, recording the stock

Shares of ownership of a corporation.

 at cost.

May

1

Declared semiannual dividends

Distribution of a corporation’s earnings to stockholders.

 of $0.80 on 75,000 shares of preferred stock

A class of stock with preferential rights over common stock.

 and $0.12 on the common stock to stockholders

The owners of a corporation.

 of record on June 1, payable on July 10.

Jul.

10

Paid the cash dividends

A cash distribution of earnings by a corporation to its shareholders.

.

Sep.

7

Sold 30,000 shares of treasury stock

Stock that a corporation has once issued and then reacquires.

 at $34, receiving cash.

Oct.

1

Declared semiannual dividends of $0.80 on the preferred stock and $0.12 on the common stock (before the stock dividend). In addition, a 2% common stock dividend

A distribution of shares of stock to its stockholders.

 was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36.

Dec.

1

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