3. The stockholders equity of Rayborn Corporation at January 1 of the current year appears below

Common Stock, $5 Par Value, 400,000 shares authorized;

160,000 shares issued and outstanding $800,000

Premium on Common Stock 920,000

Retained Earnings 513,000

During the year, the following transactions occurred:

June 7 Declared a 10% stock dividend; market value of the common stock was $10 per share.

28. Issued the stock dividend declared on June 7.

Dec 5 Declared a cash dividend of $1.25 per share.

26. Paid the cash dividend declared on December 5.

31. Closed the net income of $412,000 from the Income Summary account to Retained Earnings.

REQUIRED:

1. Prepare general journal entries to record the foregoing transactions.
2. Prepare a Statement of Retained Earnings