Ayayai Company reported the following amounts in the stockholders’ equity section of its December 31, 2016, balance sheet.
Preferred stock, 9%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000
Common stock, $5 par (102,000 shares authorized, 20,400 shares issued) 102,000
Additional paid-in capital 120,000
Retained earnings 495,000
Total $917,000
During 2017, Ayayai took part in the following transactions concerning stockholders’ equity.
1. Paid the annual 2016 $9 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016.
2. Purchased 1,700 shares of its own outstanding common stock for $41 per share. Ayayai uses the cost method.
3. Reissued 600 treasury shares for land valued at $30,400.
4. Issued 480 shares of preferred stock at $105 per share.
5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $44 per share.
6. Issued the stock dividend.
7. Declared the annual 2017 $9 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018.
Prepare journal entries to record the transactions described above.