During the discussion about financing, Lori mentions that one of her clients, Roberto Marino, has approached her about buying a significant interest in the new club. Having an interested investor sways the three to issue equity securities to provide the financing they need. On July 21, 200, Mr. Marino buys 90 shares at the price of $10 per share. The club, Life Path Fitness, opens on January 12, 2008, and after a slow start, begins to produce the revenue desired by the owners. They owners decide to pay themselves a stock dividend, since cash has been less than abundant since they opened their doors. The 10% stock dividend is declared by the owners on July 27, 2008. The market value of the stock is $3 on the declaration date. The date of record is July 31, 2008 (there have been no changes in stock ownership since the initial issuance), and the issue date is August 15, 2008. By the middle of the fourth quarter of 2008, the cash flow of Life Path Fitness has improved to the point that the owners feel ready to pay themselves as cash dividend. They declare a $0.05 cash dividend on December 4, 2008. The record date is December 14, 2008, and the payment date is December 24, 2008.

Instructions: Record all the transactions related to the common stock of Life Path Fitness during the years 2007 and 2008. (2. Indicate how many shares are issued and outstanding after the stock dividend is issued.