11/16.) Retained Earnings: Transactions and Statement The stockholders equity of Cyclone Corporation at January 1 follows:

6 Percent preferred stock, $25 par value, 40,000 shares authorized;
20,000 shares issued and outstanding	$500,000
Common stock, $5 par value, 300,000 shares authorized; 80,000 shares
issued and outstanding	400,000
Paid-in capital in excess of par valueCommon stock	560,000
Retained earnings	830,000
Total Stockholders Equity	$2,290,000

The following transactions, among others, occurred during the year:

June	18	Declared a 50 percent stock dividend on all outstanding shares of common stock. The market value of the stock was $14 per share.
July	1	Issued the stock dividend declared on June 18.
Dec.	20	Declared the annual cash dividend on the preferred stock and a cash dividend of $1.30 per share on the common stock, payable on January 20 to stockholders of record on December 28.

Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of retained earnings. The net income for the year is $379,000.