Reference no: EM132869330

The stockholders' equity section of Benton Corporation's balance sheet as of Dec 31, 2008 is as follow:

common stock $1 par value, 400000 shares authorized

250000 shares issued and outstanding $250000

paid in capital common stock 600000

5% preferred stock, $50 par value, 20000 shares

authorized, 10000 shares issued and outstanding 500000

Retained earnings 1000000

During 2008, Benton Corporation had several transactions relating to common stock.

Jan 15: Declared a property dividend of 200000 shares of Foley Corporation( book value $5 per share, market value $3 per share).

Feb 10: Distributed the property dividend.

March 1: A 2 for 1 stock split was declared and issued on the outstanding common stock and affected in the form of a stock dividend. The market value of the common stock on this date was $15 per share.

Apr 1: A 5% stock dividend was declared and issues on outstanding common stock when the market value per share is $12.

Oct 5: 10000 shares of Benton's common stock were sold on a subscription basis for $6 per share. A 30% down payment was received on this date.

Nov 1: Assume the subscriber from Oct 5 defaulted and Benton Corporation issued a proportional amount of shares to the defaulting subscriber based on the money paid by the subscriber.

Required:

Problem 1: Record the journal entry for each of above.