Question - Daniels Corporation reports the following transactions for 2012:
Jan. 10 Sold 5,000 shares of 9% non-cumulative $50 par, preferred stock for $85 per share.
Feb. 19 Sold 3,000 shares of $10 par common stock for $12 per share.
Oct. 12 Declared a 15% stock dividend on the common stock. The current market price of the common stock is $15 per share. Daniels "Corporation has 100,000 shares of common stock outstanding on October 12.
Nov.15 Distributed the stock dividend declared on October 12.
Dec. 15 Declared the annual dividend required on the preferred stock and a $.50 per share dividend on the common stock. Daniels Corporation currently has 20,000 shares of preferred stock outstanding.
Prepare journal entries for the above transactions. Use the explanation portion of each journal entry to show your work.