On January 1, 2018, Stengel Corporation, a publicly traded company, had these shareholders' equity accounts:
Common shares (unlimited number of shares authorized, 150,000 issued).....$3,400,000
Retained earnings...............................................................................................1,800,000
Accumulated other comprehensive loss................................................................250,000
During the year, the following transactions occurred:
Feb. 1 Declared a $1 per share cash dividend to shareholders of record on February 15, payable March 1.
Apr. 2 Effected a 3-for-1 stock split. On April 2, the share price was $36.
July 2 Declared a 5% stock dividend to shareholders of record on July 16, distributable July 31. On July 2, July 16, and July 31, the share prices were $14, $13.50, and $13.75, respectively.
Dec. 31 Determined that net income for the year was $800,000.
Instructions
(a) Record the above transactions, including any entries required to close dividends and net income.
(b) Open T accounts as required and post to the shareholders' equity accounts.
(c) Prepare a statement of changes in equity for the year.
(d) Prepare the shareholders' equity section of the statement of financial position at December 31.