During the first year of operations, New York Corporation had the following transactions:

? Jan. 1 — Issued 50,000 shares of $1 par value common stock at $20 per share.
? May 24 — Reacquired 5,000 shares of common stock sold on Jan. 1 for $23 per share.
? Aug. 31 — Sold 500 shares of its treasury stock purchased on May 24 for $25 per share.
? Oct. 18 — The board of directors declared and distributed a 10% common stock dividend. The market price of the common stock was $26 per share at the time of the declaration.
? Nov. 24 — The board of directors declared a cash dividend of $0.50 per share payable to stockholders on December 8.
? Dec. 8 — Paid the cash dividends declared on November 24.

Required:
Prepare the journal entries for the above transactions. Omit explanations.

Date Account Debit Credit
Jan. 1 Cash (50,000 × $20 ) 1,000,000
Common Stock (50,000 × $1 ) 50,000
Paid-in Capital in Excess of Par—Common 950,000

May 24 Treasury Stock (5,000 × $23 ) 115,000
Cash 115,000

Aug. 31 Cash (500 × $25 ) 12,500
Treasury Stock (500 × $23 ) 11,500
Paid-in Capital from 1,000
Treasury Stock Transactions
Oct. 18 Retained Earnings (45,500 × 10% × $26 ) 118,300
Common Stock (45,500 × 10% × $1 ) 4,550
Paid-in Capital in Excess of Par—Common 113,750

Nov. 24 Retained Earnings 25,025
Dividends Payable 25,025
(50,000 - 5,000 + 500 ) = 45,500 shares
[(45,500 + 4,550 ) × $0.50] = $25,025

Dec. 8 Dividends Payable 25,025
Cash 25,025