Declared semiannual dividends of $1.20 on the preferred stock and $.15 on the common stock (before the stock dividend) Plus, a 1% common stock dividend was declared on the common stock outstanding at the fair market value of the common stock at $30. The 500,000 common shares outstanding 80,000 preferred stock purchased 75,000 shares of common and sold 40,000 shares of common.

I have tried to answer this question on my own for some time now and I just can't figure it out.:mad:

Well, you haven't actually said what you are required to do. Mathematically, the cash dividend is easy cause they give you exactly what is paid per share and you pay it on the number of shares outstanding. (I can't even tell what is outstanding because of the way you've presented the information - trying to paraphrase from the problem is not a good idea cause the meaning can get lost to us.)

For stock dividends there is some info here:
Stock Splits and Stock Dividends | AccountingCoach.com (http://www.accountingcoach.com/online-accounting-course/17Xpg05.html#stock-splits-dividends)

Declared semiannual dividends of $1.20 on the preferred stock and $.15 on the common stock (before the stock dividend) Plus, a 1% common stock dividend was declared on the common stock outstanding at the fair market value of the common stock at $30. The 500,000 common shares outstanding 80,000 preferred stock purchased 75,000 shares of common and sold 40,000 shares of common.

I have tried to answer this question on my own for some time now and I just can't figure it out.:mad:

Need to Journalize the transactions.

Did you look at the link I gave you? I believe it has journal entries too. You need to figure out all the dollar amounts first anyway. And I can't even really help figure that part out because I really don't understand what you're saying about the number of shares.

If you've been trying to figure it out on your own, what have you done?