Selected data from the comparative balance sheets of Labtec Company as of December 31, Year 1, and Year 2 appear below:
Year 1 Year 2
Preferred stock, $100 Par, Issued at Par $0 $ 600,000
Common Stock, $30 Par 300,000 345,000
Additional Paid-in Capital 120,000 177,000
Retained Earnings 1,260,000 1,320,000
Total $1,680,000 $2,442,000
*Less Cost of Treasury Shares -72,000 -
Total Shareholders' Equity $1,608,000 $2,442,000
*Cost of 1,500 shares.
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.