8% Preferred stock, $100 par value, cumulative,

10,000 shares authorized, 7,000 shares issued and outstanding

$700,000

Common Stock, $10 par value, 500,000 shares authorized;

250,000 shares issued and outstanding

2,500,000

Additional paid-in capital-preferred

100,000

Additional paid-in capital-common

1,000,000

Retained Earnings

5,000,000

Total shareholders' Equity

$9,300,000

Feb. 1

 Issued 50,000 shares of $10 par value common stock for $750,000

April 15

 Purchased 4,000 shares of treasury stock for $80,000

May 12

 Sold 1,000 shares of treasury stock for $24,000

June 6

 Sold the remaining 3,000 shares of treasury stock for $32,000

June 30

 Declared dividends of $620,000, payable on 7/28/08 to owners of record on 7/14/08.

July 14

Date of record

July 28

 Payment date

Sept. 15

Declared a 10% stock dividend (to common stock holders). The market price on 9/15 was $21 to be distributed on 10/15.

Oct. 15

 Distributed the stock dividend.