How do I account for treasury stock use in a stock dividend for preferred stock?
What would the journal entry by?
I don't believe I should debit retained earnings for this transaction, but I'm not sure what account to debit.
Please Help

The cost method of accounting for treasury stock records the amount paid to repurchase stock as an increase (debit) to treasury stock and a decrease (credit) to cash. The treasury stock account is a contra account to the other stockholders' equity accounts and therefore, has a debit balance.

Source: Cliff Notes - Accounting for Stock Transactions (http://www.cliffsnotes.com/study_guide/Accounting-for-Stock-Transactions.topicArticleId-21248,articleId-21193.html)