On January 1, 2020, Primo Corporation had the following stockholders’ equity accounts.

Common Stock ($10 par value, 75,000 shares issued and outstanding) .............................. $750,000
Paid-in Capital in Excess of Par—Common Stock ....................................................................   200,000
Retained Earnings ........................................................................................................................   540,000
During the year, the following transactions occurred.

Jan. 15 Declared a $1 cash dividend per share to stockholders of record on January 31, payable February 15.
Feb. 15 Paid the dividend declared in January.

Apr. 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $14 per share.

May 15 Issued the shares for the stock dividend.

July 1 Announced a 2-for-1 stock split. The market price per share prior to the announcement was $15.
(The  new par value is $5.)

Dec. 1 Declared a $0.60 per share cash dividend to stockholders of record on December 15, payable January 10, 2021.

31 Determined that net income for the year was $250,000.

Instructions

a. Journalize the transactions and the closing entries for net income and dividends.

b. Enter the beginning balances, and post the entries to the stockholders’ equity accounts. Open additional stockholders’ equity accounts as needed.

c. Prepare a stockholders’ equity section at December 31, 2020.