Direction. Read and understand the case and answer the requirements. On December 31, 2020, Shipyard, Inc. reported the following stockholders' equity account: Common Stock, $10 par value Paid-in Capital in excess of par value, common stock Retained Earnings In 2021, the following entries related to its equity are recorded. $1,000,000 300,000 700,000 Date Accounts Debit Credit Jan. 17 Retained Earnings 100,000 Common Dividend Payable 100,000 Feb 5 Common Dividend Payable 100,000 Cash 100,000 Feb 28 Retained Earnings 250,000 Common Stock Dividend Distributable 120,000 Paid-in Capital in Excess of Par Value, Common Stock 130,000 Mar 14 Common Stock Dividend Distributable 120,000 Common Stock, $10 Par Value 120,000 Dec 31 Income Summary 500,000 Retained Earnings 500,000 The table shows the equity balances as of December 31, 2021. 2021 Beginning Balance Dividend declaration Common Stock Paid-in capital in excess of par Common stock dividend Treasury Shares distributable Retained Earnings Total 1,000,000 300,000 700,000 2,000,000 100,000 100,000 120,000 120,000 130,000 50,000 50,000 1,130,000 300,000 120,000 0 850,000 2,400,000 Stock Dividend Declaration Stock Dividend Distribution Net Income 130,000 Ending Balance Requirement. (a) Assuming that the 2021 journal entries pertaining to equity accounts are correct, evaluate the table showing the equity accounts of Shipyard, Inc. as December 31, 2021, whether the equity accounts' balances are appropriate or not. If not, make the prepare the correct Stockholders' equity account balances. (12 marks)