Selected transactions completed by Primo Discount Corporation during the current fiscal year are as follows:

Jan. 9 Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 1,200,000 common shares outstanding.

Feb. 28 Purchased 40,000 shares of the corporation’s own common stock at $28, recording the stock at cost.

May 1 Declared semiannual dividends of $0.80 on 75,000 shares of preferred stock and $0.12 on the common stock to stockholders of record on June 1, payable on July 10.

Jul. 10 Paid the cash dividends.

Sep. 7 Sold 30,000 shares of treasury stock at $34, receiving cash.

Oct. 1 Declared semiannual dividends of $0.80 on the preferred stock and $0.12 on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36.

Dec. 1 Paid the cash dividends and issued the certificates for the common stock dividend.

Journalize the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for the exact wording of account titles.

CHART OF ACCOUNTS:

ASSETS
Cash
Accounts Receivable
Notes Receivable
Interest Receivable
Merchandise Inventory
Office Supplies
Prepaid Insurance
Land
Equipment
Accumulated Depreciation-Equipment

LIABILITIES
Accounts Payable
Notes Payable
Interest Payable
Cash Dividends Payable
Salaries Payable
Mortgage Note Payable

EQUITY
Common Stock
Paid-In Capital in Excess of Par-Common Stock
Treasury Stock
Preferred Stock
Paid-In Capital in Excess of Par-Preferred Stock
Paid-In Capital from Sale of Treasury Stock
Retained Earnings
Stock Dividends Distributable
Cash Dividends
Stock Dividends
Income Summary

REVENUE
Sales
Interest Revenue

EXPENSES
Cost of Merchandise Sold
Credit Card Expense
Salaries Expense
Advertising Expense
Delivery Expense
Selling Expenses
Rent Expense
Insurance Expense
Office Supplies Expense
Organizational Expenses
Depreciation Expense-Equipment
Miscellaneous Expense
Interest Expense