ACCOUNTING 201-Light & Light Inc is a lighting fixture wholesaler

Light & Light Inc is a lighting fixture wholesaler located in Texas. During its fiscal year, ended December 31, 2012, Light & Light Inc. completed the following selected transactions:

Feb 3 Purchased 2000 shares of its own common stock at $30, recording the stock at cost. (prior to the purchase, there were 42000 shares of $25 per common stock outstanding)

May 1 Declared a semi-annual dividend of $1.15 on the 10000 shares of preferred stock and a $0.25 dividend on the common stock to stockholders of record on May 31, payable on June 15.

June 15 Paid the cash dividends

Sept 23 Sold 1000 shares of treasury stock at $32, receiving cash

Nov 1 Declared semi-annual dividends of $1.15 on the preferred stock and $0.25 on the common stock. In addition, a 6% common stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimated at $35.

Dec 1 Paid the cash dividends and issued the certificates for the common stock dividend.

INSTRUCTIONS---------

Journalize the entries to record the transactions for Light & Light Inc.