Chapter 10, Problem 10.87BP

(Learning Objectives 2, 3, 4: Account for stock issuance, dividends, and treasury stock) Madrid Jewelry Company reported the following summarized balance sheet at December 31, 2018:

Assets
Current assets	$ 33,400
Property anti equipment, net	106,600
Total assets	$140,000
Liabilities and Equity
Liabilities	$ 37,000
Stockholders’ equity:
$0.80 cumulative preferred stock, $10 par,
400 shares issued	4,000
Common stock, $9 par, 6,500 shares issued	58,500
Paid-in capital in excess of par—common	18,500
Retained earnings	22,000
Total liabilities and equity	$ 140,000

During 201 9, Madrid Jewelry completed these transactions that affected stockholders' equity:

Feb 13	Issued 5,300 shares of common stock for $12 per share.
Jun 7	Declared the regular cash dividend on the preferred stock.
24	Paid the cash dividend.
Aug 9	Declared and distributed a 20% stock dividend on the common stock. Market price of the common stock was $17 per share.
Oct 26	Reacquired 700 shares of common stock as treasury stock, paying $20 per share.
Nov 20	Sold 300 shares of the treasury stock for $24 per share.
Dee 31	Declared a cash dividend of $0.25 per share on the outstanding common stock; dividends will be paid in January, 2020.

Requirements

Journalize Madrid Jewelry’s transactions. Explanations are not required.

Prepare the company’s stockholders’ equity section of the balance sheet at December 31, 2019. Net income for 2019 was $30,000.