On january 1, 2018, magnus corporation had 60,000 shares of $1 par value common stock issued and outstanding. during the year, the following transactions occurred: mar. 1 issued 35,000 shares of common stock for $550,000. june 1 declared a cash dividend of $2.00 per share to stockholders of record on june 15. july 30 paid the $2.00 cash dividend. dec. 1 purchased 5,000 shares of common stock for the treasury for $22 per share. dec. 15 declared a cash dividend on outstanding shares of $2.20 per share to stockholders of record on december 31.
prepare journal entries to record the above transactions.

(A) March 1st

cash debit 550,000

common stock credit 35,000

additional paid-in credit 515,000

(B) June 1

dividends debit 180,000

dividends payable credit 180,000

(C) June 15

dividends payable debit 180,000

cash credit 180,000

(D) Dec 1

Treasury Stock debit 110,000

Cash credit 110,000

(E) Dec 15

dividends debit 187,000

dividends payable credit 187,000

Explanation:

(A)

(B)

(C)

payment of (B)

(D)

(E)

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