P14-2A The balance sheet of Kugel, Inc., at December 31, 20X6. reported 100,000 shares of no-par common stock authorized, with 30,000 shares issued and a Common Stock balance of $180.000. Retained Earnings had a balance of $141.500. During 20X7. the company com- pleted the following selected transactions: Mar. 15 Purchased 4,000 shares of the company's own common stock for the treasury at $5 per share. Apr. 30 Distributed a 20% stock dividend on the 26,000 shares of outstanding common stock. The market value of Kugel common stock was $10 per share. Oct. 8 Sold 2.800 shares of treasury common stock for $12 per share. Dec. 19 Split the no-par common stock 2 for 1 by issuing two new no-par shares for each old no-par share previously issued. Prior to the split, the corporation had issued 35,200 shares. Stock splits affect all authorized and issued stock, including trea- sury stock as well as stock that is outstanding. 31 Earned net income of $117.000 during the year. Closed net income to Retained Earnings. Required 1. Record the transactions in the general journal. Explanations are not required. 2. Prepare the stockholders' equity section of Kugel's balance sheet at December 31, 20X7.