3) Owners Equity (20 points)

A) Record the journal entries for the complete set of capital transactions during year 1 for a firm starting up on 1/1/1:

1. a) On 1/1/1, the firm issues 100 shares of $1 par value common stock for $1,000.

2. b) On 4/1/1, 7/1/1, and 10/1/1, the firm declares and pays dividends of $0.25/share.

3. c) On 11/1/1, the firm repurchases 10 shares for Treasury Stock for $12/share.

4. d) On 12/1/1, the firm declares and issues a 10% stock dividend when the share price remains $12/share.

B) During year 1, the firm earns net income of $100. Determine the balances of all owners equity accounts at the end of year 1.