17A-6 The stockholders' equity of Geothermal Resources, Inc., at January 1, Year 5, is as follows: Stockholders' equity: Common stock, $5 par value, 500,000 shares authorized, 240,000 issued Paid-in capital in excess of par: common stock Total paid-in capital Relained earnings. Tofal stockholders' equity. $1,200,000 4,065,000 $5,265,000 1,610,000 $6,875,000 During Years, the following transactions relating to stockholders' equity oc- curred: Jan. 15 Paid, a $2 per share cash dividend declared in December of Year: 4. This dividend was properly recorded at the declaration date and was the only dividend declared during Year 4. June 10 Declared a 10% stock dividend to stockholders of record on June 30, to be distributed on July 15. At June 10, the market price of the stock was $35 per share... July 15 Distributed the stock dividend declared on June 10. Aug. 4 Purchased 5,200 shares of treasury stock at a price of $30 per share. Oct. 15 Reissued 2,200 shares of treasury stock at a price of $34.per share. Dec. 10 Reissued 1,000 shares of treasury stock at a price of $28.50 per share. Dec. 15 Declared a cash dividend of $2 per share to be paid on January 15 of Year 6 to stockholders of record on December 31. Dec. 31. The Income Summary account, showing net income of $890,000, was closed into the Retained Earnings account. Instructions a Prepare in general journal form the entries necessary to record these transactions. b Prepare the stockholders' equity section of the balance sheet at December 31, Year 5. Include a note following your stockholders' equity section indicating any portion of retained earnings which is not available for dividends. Also include a supporting schedule showing your computation of the balance of retained earnings at year-end. c Comment on whether Geothermal Resources, Inc., increased or decreased the total amount of cash dividends declared during Year 5 in comparison with divi- dends declared in the preceding year