On January 1, 2004, Peltz Incorporated hod 80,000 shares of $4 par common stock Issued and outstanding and retained earnings of $270,000, On July 14 a 10% stock didend was declared when the price of the stock was $12 per share. On July 30, the shares for the stock dividend were issued. Net income for the year was $137,000 DEBIT or CREDIT What is the journal entry to issue the shares for the dividend?

Assume the perpetual inventory method is used. 1) the company purchased $12,500 of merchandise on account under terms 2/10, n/30. 2) the company returned $1,200 of merchandise to the supplier before payment was made. 3) the liability was paid within the discount period. 4) all of the merchandise purchased was sold for $18,800 cash. what effect will the return of merchandise to the supplier have on the accounting equation?