Answer:
cash   4,900,000 debit
    common stock              700,000 credit
    additional paid-in        4,200,000 credit
    in excess of Par-value
treasury stock:   360,000 debit
       cash                      360,000 credit
dividends     340,000 debit
    dividends payable        340,000 credit
Explanation:
cash proceeds: 700,000  x 7 = 4,900,000
common stock: 700,000  x 1  =    700,000
additional paid-in:  (difference)           4,200,00
treasury stock: 20,000 x 18 = 360,000
outstanding shares: 700,000 - 20,000 = 680,000
cash dividends: 680,000 x 0.50 = 340,000