b) On January 1, 2017, Rahim Corporation had the following stockholders' equity

accounts.

Common Stock ($ 10 par value, 60,000 shares issued and $ 6,00,000

outstanding)

Paid-in Capital in Excess of Par-Common Stock

2.00.000

Retained Earnings

7,00,000

During the year, the following transactions occurred.

Jan. 1 Declared a $ 1.80 cash dividend per share to stockholders of record on

January 15, payable

March 1

Mar. 1 Paid the dividend declared in January.

Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per

share was $ 17.

Aug. 1 Declared a 10% stock dividend to stockholders of record on July 15,

distributable Aug. 31. On

Aug. 1, the market price of the stock was $ 6 per share.

Aug. 31 Issued the shares for the stock dividend.

Dec. 1 Declared a $ 0.60 per share dividend to stockholders of record on

December 15,

payable January 5, 2018.

31 Determined that net income for the year was $ 1,25,000.

Required:

Journalize the transactions and the closing entry for net income & show the calculation process.