a. Prepare journal entries to record the foregoing transactions.

b. create a statement of retained earnings. The net income for the year is $435,000.

Retained Earnings: Transactions and Statement The stockholders' equity accounts of Raymund Corporation as ofJanuary1 appear below: Common stock, $1 par value, 400,000 shares authorized; 160.000 shares issued and outstanding $160,000 Paidin capital in excess of par value 920,000 Retained earnings 513,000 During the year, the following transactions occurred: June 7 Declared a 20 percent stock dividend: market value of the common stock was $15 per share. June 28 Issued the stock dividend declared on June 7. Dec. 5 Declared a cash dividend of $2.00 per share. Dec. 26 Paid the cash dividend declared on December 5. Required a. Prepare journal entries to record the foregoing transactions. Generaljournal Date Description Debit Credit Iun.07 Stock Dividends $ V 35 0 at $ 0 v Stock Dividends Distributable 0 v 0 8 PaidinCapital in Excess of Par Value : v 0 v D 8 Declared stock dividend. Iun.28 Stock Dividends Distributable $ v 0 x 0 v Common Stock 0 v 0 8 Issued common shares as stock dividend. Dec.05 Cash Dividends : v 0 a: 0 v Dividends Payable : v 0 v D 8 Declared a cash dividend on common stock outstanding. Dec.26 Dividends Payable $ v 0 x 0 v Cash : v 0 v 0 8 Paid cash dividend declared on Dec. 5. b. Prepare a statement of retained earnings. The net income for the year is $435,000. Do not use negative signs with your answers. RAY MUND CORPORATION Statement of Retained Earnings For the Year Ended December 31 Retained Earnings,January1 $ 0 a: Add: Net Income : v 0 x 0 8 Less: Cash Dividends Declared : V 35 0 a: Stock Dividends Declared 0 a: 0 a: Retained Earnings, December 31 e v 35 D 8