At the beginning of January 201X, the stockholders equity of Mountain View Corporation consisted of the following:

Paid-In Capital:
Common Stock, $30 par value, authorized 60,000 shares, 15,000 shares issued and outstanding	$450,000
Paid-In Capital in Excess of Par Value-Common	80,000
Paid-In Capital by Common
Stockholders	$530,000
Retained Earnings	170,000
Total Stockholders Equity		$700,000

Figure 8

Tasks:

a. Record the transactions in general journal form.

b. Prepare the stockholders equity section at year-end using the Blueprint as a guide.

c. Prepare a statement of retained earnings at December 31, 201X.

Accounts are provided in the working papers that accompany this text. Be sure to put in the beginning balances.

201X

June 5 Mountain View Corporation purchased 1,000 shares of treasury stock at $34.

June 25 The board of directors voted a $0.20 per share cash dividend payable on July 20 to stockholders of record on July 4.

July 20 Cash dividend declared on June 25 is paid.

Sept. 10 Sold 300 shares of the treasury stock at $43 per share.

Sept. 30 Sold 700 shares of the treasury stock at $33 per share.

Oct. 15 The board of directors declared a 10% stock dividend distributable on January 2 to stockholders of record on November 2. The market value of the stock is currently $50 per share.

Dec. 31 Closed the net income of $70,000 in the Income Summary account to Retained Earnings.