Rolman Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. In its fi rst year, the company has the following stock transactions. LO6 Jan. 10 Issued 400,000 shares of stock at $8 per share.

Sept. 21 Purchased 10,000 shares of common stock for the treasury at $9 per share.

Dec. 24 Declared a cash dividend of 10 cents per share on common stock outstanding.

INSTRUCTIONS

(a) Journalize the transactions.

(b) Prepare the stockholders’ equity section of the balance sheet, assuming the company had retained earnings of $150,600 at December 31 and an accumulated other comprehensive loss of $105,000.