Problem

The accounts for Gulf Corp. reported the equity account balances shown in the table below on December 31, 2014: Preferred shares, $4 cumulative, unlimited shares authorized 0 Common shares, unlimited shares authorized, 46,000 shares issued and outstanding 138,000 Retained Earnings 270,000 In 2015 Gulf Corp. had the following transactions affecting shareholders and the statement of changes in equity accounts:

a. February 24 : A 25% share dividend was declared when the market value was $20.00 per share, to be paid on March 7.

b. March 7 : Date of distribution regarding the 25% share dividend.

c. March 27 : Issued 9,000 preferred shares at $13.00 per share for cash.

d. April 25 : The directors declared a total cash dividend of $93,500 payable on May 10 to the May 5 shareholders of record.

e. May 10 : The cash dividend declared on April 25 was paid.

f. December 31 : Closed the $280,000 credit balance in the Income Summary account.

g. December 31 : Closed the dividend accounts.

Required:

Prepare general journal entries to record the transactions.