Last May 31, Rubinett Corporation had a \(\$ 2.1\) million credit balance in its Retained Earnings account. On that date, the corporation's contributed capital consisted of 300,000 authorized shares of \(\$ 10\) par, common stock, of which 105,000 shares had been issued at \(\$ 15\) and were outstanding. It then completed the following transactions:

June 1 The board of directors declared a \(\$ 5\) per share dividend on the common stock, payable on July 5 to the June 15 stockholders of record.

July 5 Paid the dividend declared on June 1.

12 The board declared a \(25 \%\) stock dividend, distributable on August 10 to the July 28 stockholders of record. The stock was selling at \(\$ 50\) per share.

Aug. 10 Distributed the stock dividend declared on July 12.

31 Since August 31 is the end of the company's fiscal year, closed the Income Summary account, which had a credit balance of \(\$ 656,250\). Also closed the Cash Dividends Declared and Stock Dividends Declared accounts.

Sept. 8 The board of directors voted to split the corporation's stock 5 for 1 by calling in the old stock and issuing five \(\$ 2\) par value shares for each \(\$ 10\) share held. The stockholders voted approval of the split and authorization of 1 million new \(\$ 2\) par value shares to replace the \(\$ 10\) shares; all legal requirements were met; and the split was completed on October 5 .

\section*{Required}

1. Prepare general journal entries to record these transactions.

2. Under the assumption Jill Owens owned 1,500 of the \(\$ 10\) par value shares on May 31 and neither bought nor sold any shares during the period of the transactions, prepare a schedule with columns for the date, supporting calcu-

lations, book value per share, and book value of Owens' shares. Then complete the schedule by calculating the book value per share of the corporation's stock and the book value of Owens' shares at the close of business on May 31, June 1, July 5, August 10, August 31, and September 8. Assume that the only income earned by the company during these periods was the \(\$ 656,250\) earned and closed on August 31.
3. Prepare three stockholders' equity sections for the corporation, the first showing the stockholders' equity on May 31, the second on August 31, and the third on September 8.