A.

Cash

G.

Bonds payable

B.

Remaining assets

H.

Contributed capital in excess of par

C.

Retained earnings

I.

Treasury stock

D.

Common stock, par $20

J.

Other accounts not listed

E.

Dividends payable

K.

Dividends declared

F.

Accounts payable

L.

No entry needed

Transaction

Debits

Credits

Code

Amount

Code

Amount

1.

Sold and issued 10 common shares at par. Disregard in subsequent transaction.

 A

 $200

D 

$200                     

2.

Sold and issued 5,000 shares common stock at $26 per share.

A

$130000 

 D

H

$100000 

$30000

3.

Issued a 10% stock dividend when the stock was selling at $30 per share.

K 

$10020 

E

$10020 

4.

Declared a cash dividend of $1 per share on the shares outstanding.

K 

$5010 

E

$5010 

5.

Paid the cash dividend of $1 per share declared earlier (see above).

E 

$5010 

A 

$5010 

6.

Purchased 100 shares of treasury stock at $27 per share.

I 

$2700 

A

$2700 

7.

Issued a 2-for-1 stock split when the market price was $30 per share.