3 Problem 12.6A (Static) Recording Stock Dividends and Treasury Stock Transactions (L012-4, LO12-8) 5 points At the beginning of 2021, Thompson Service, Inc., showed the following amounts in the stockholders' equity section of its balance sheet Stockholders' equity: Capital stock, $1 por value, 500,000 shares authorized, 382,000 issued and outstanding $ 382,000 Additional paid-in capital: capital stock 4,202,000 Total paid-in capitol $ 4,584,000 Retained earnings 2.704,600 Total stockholders' equity $ 7,288,600 eBook References The transactions relating to stockholders' equity during the year are as follows. Jan. 3 Declared a dividend of $1 per share to stockholders of record on January 31, payable on February 15. Feb. 15 Paid the cash dividend declared on January 3. Apr. 12 The corporation purchased 6,000 shares of its own capital stock at a price of $40 per share. May 9 Reissued 4,000 shares of the treasury stock at a price of $44 per share. June 1 Declared a 5 percent stock dividend to stockholders of record at June 15, to be distributed on June 30. The market price of the stock at June 1 was $42 per share. (The 2,000 shares remaining in the treasury do not participate in the stock dividend.) June 30 Distributed the stock dividend declared on June 1. Aug 4 Reissued 600 of the 2,000 remaining shares of treasury stock at a price of $37 per share. Dec. 31 The Income Sunnary account, showing net income for the year of $1,028,000, was closed into the Retained Earnings account. Dec. 31 The $382,000 balance in the Dividends account was closed into the Retained Earnings account. Required: a. Prepare in general Journal form the entries to record the above transactions. b. Prepare the stockholders' equity section of the balance sheet at December 31, 2021. Include a supporting schedule showing your computation of retained earnings at that date. c. Compute the maximum cash dividend per share that legally could be declared at December 31, 2021, without impairing the paid in capital of Thompson Service. (Hint: The availability of retained earnings for dividends is restricted by the cost of treasury stock owned) Complete this question by entering your answers in the tabs below. Complete this que on by entering your answers in the tabs below. Required A Required B Required Prepare in general journal form the entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Complete this question bytering your answers in the tabs below. Required A Required B Rigured Prepare the stockholders' equity section of the balance sheet at December 31, 2021. Include a supporting schedule showing your computation of retained earnings at that date. THOMPSON SERVICE INC. Partial Balance Sheet December 31, 2021 Stockholders' equity Additional paid-in capital: Total paid-in capital Total stockholders' equity Computation of retained earnings at Dec 31, 2021 Retained earnings at beginning of year Subtotal Retained earings, Dec. 31, 2021 Required A Required c> equity section of the balance sheet at December 31, 2021. Include a supporting schedule showing your computation of retained earnings at that date. c. Compute the maximum cash dividend per share that legally could be declared at December 31, 2021, without impairing the paid in capital of Thompson Service. (Hint: The availability of retained earnings for dividends is restricted by the cost of treasury stock owned) Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the maximum cash dividend per share that legally could be declared at December 31, 2021, without Impairing the pald-in capital of Thompson Service. (Hint: The availability of retained earnings for dividends is restricted by the cost of treasury stock owned.) (Round your answer to 2 decimal places.) Cash dividend per share