Davenport Corporation's stockholders' equity on December 31, 1989, consisted of the following:

During 1990, the company completed these transactions:
Feb. 10 Purchased 15,000 shares of treasury stock at \(\$ 1.25\) per share.
Mar. 25 The directors voted a \(\$ 0.05\) per share cash dividend payable on April 20 to the April 10 stockholders of record.
Apr. 20 Paid the dividend declared on March 25.
June 8 Sold 5,000 of the treasury shares at \(\$ 1.30\) per share.
Nov. 9 Sold 10,000 of the treasury shares at \(\$ 0.80\) per share.

Dec. 21 The directors voted a \(\$ 0.10\) per share cash dividend payable on January 20 to the January 5 stockholders of record, and they voted a \(3 \%\) stock dividend distributable on February 2 to the January 21 stockholders of record. The market value of the stock was \(\$ 1.15\) per share.
31 Closed the Income Summary account and carried the company's \(\$ 50,500\) net income to Retained Earnings.
31 Closed the Cash Dividends Declared and Stock Dividends Declared accounts.
\section*{Required}
1. Prepare general journal entries to record the transactions.
2. Prepare a retained earnings statement for the year and the stockholders' equity section of the company's year-end balance sheet.
Problem 13-2 Cash dividend, stock dividend, and stock split (L.O. 1)

Transcribed Image Text:

Common stock, $1 par value, 500,000 shares authorized, 205,000 shares issued Contributed capital in excess of par value, common stock Retained earnings. Total stockholders' equity. $205,000 52,300 145,200 $402,500