210A2 Equity transactions: Journal entries and stockholders' equity secting (LO. 1, 2) An examination of the ledger of Goodrich Metals revealed the follow accounts on January 1: Common stock, $1 par, 50,000 shares authorized, $ 30,000 30,000 shares issued, 29,500 shares outstanding 270,000 Paid-in capital in excess of par value Retained earings 370,500 oo Ison Treasury stock, 500 shares at cost 6,000 Goodrich is required by state law to restrict retained earnings at an 12 amount equal to the cost of any treasury shares held by the firm. The following transactions and events occurred during the year: Jan. 7 Declared a $0.20 dividend per share to stockholders of record on January 23. The dividend will be distributed on February Feb. 8 Paid the dividend declared on January 7. Apr. 15 Sold 300 shares of treasury stock for $4,500. June 30 Declared a 10% stock dividend on the shares outstanding to stockholders of record on July 15. The dividend will be dis tributed on August 15. Fair market value on the date of decla ration was $14 per share. Aug. 15 Issued the stock dividend declared on June 30. Dec. 31 Net income for the year amounted to $98,000. Closed the Income Summary account to Retained Earnings, Instructions a Prepare journal entries to record Goodrich's transactions and events b Prepare the stockholders' equity section of Goodrich's December 31 balance sheer, along with any appropriate notes to the financial state ments 761