Problem - ABC Inc. has the following stockholders' equity on January 1, 2013:

Common stock, 500,000 shares, $5 par $2,500,000

Contributed capital in excess of par-common $7,500,000

Treasury Stock, 50,000 shares $1,100,000

Retained earnings $6,000,000

Paid in capital - Share repurchase $50,000

Throughout the year, ABC Inc. has made the following transactions:

January 7th ABC Inc. acquires 20,000 shares when the market price was $24 per share.

February 5th Retires 30,000 shares when the market price was $21 per share.

March 19th Reissues 50,000 shares of treasury stock at $25 per share. ABC Inc. uses the FIFO method.

April 28th ABC Inc. decides to retire their remaining treasury stock when the market is $23 per share.

May 14th Issues an additional 25,000 shares in exchange for a piece of equipment that has a fair market value of $550,000.

July 20th ABC Inc. declares that there will be a two-for-one stock split

August 3rd ABC Inc. declares a 10% stock dividend when the current market price is $25.

There are fractional shares equivalent to 5,000 shares that will be paid in cash.

October 12th A $1 cash dividend is declared. The date of record is October 20th, and the date of payment will be October 31st.

December 8th A 40% stock dividend is issued.

Required:

1) Prepare the appropriate journal entries for each transaction.

2) How many shares are issued and outstanding at the end of 2013?