A summary of the transactions affecting the stockholders equity of Riverton Corporation during the current year follows At the beginning of 2018, Thompson Service, Inc , showed the following amounts in the stockholders equity section of its balance sheet Stockholders' equity Capital stock, $1 par value, 500,000 shares authorized, 382,000 issued and outstanding $ 382,000 Additional paid in capital capital stock 4,202,000 Total paid in capital $ 4,584,000 Retained earnings 2,704,600 Total stockholders' equity $ 7,288,600 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 Summary account, showing net income for the year of $1,928,000, 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, 2018 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, 2018, without impairing the paid in capital of Thompson Service ( Note Parentheses ( ) indicate a reduction in stockholders' equity Required a Prepare a statement of stockholders equity for the year Use these column headings and beginning balances (Notice that all additional paid in capital accounts are combined into a single column ) b 1 What was the overall effect on total stockholders equity of the 5 percent stock dividend of 11,500 shares b 2 What was the overall effect on total stockholders equity of the cash dividends declared b 3 Do these two events have the same impact on stockholders equity

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A summary of the transactions affecting the stockholders equity of Riverton Corporation during the current year follows. At the beginning of 2018, Thompson Service, Inc.,

A summary of the transactions affecting the stockholders equity of Riverton Corporation during the current year follows.

At the beginning of 2018, Thompson Service, Inc., showed the following amounts in the stockholders equity section of its balance sheet.

Stockholders' equity:
Capital stock, $1 par value, 500,000 shares authorized, 382,000 issued and outstanding	$	382,000
Additional paid-in capital: capital stock		4,202,000
Total paid-in capital	$	4,584,000
Retained earnings		2,704,600
Total stockholders' equity	$	7,288,600

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 Summary account, showing net income for the year of $1,928,000, 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, 2018. 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, 2018, without impairing the paid-in capital of Thompson Service. (

Note: Parentheses ( ) indicate a reduction in stockholders' equity.

Required:

a. Prepare a statement of stockholders equity for the year. Use these column headings and beginning balances. (Notice that all additional paid-in capital accounts are combined into a single column.)

b-1. What was the overall effect on total stockholders equity of the 5 percent stock dividend of 11,500 shares?

b-2. What was the overall effect on total stockholders equity of the cash dividends declared?

b-3. Do these two events have the same impact on stockholders equity?