Exercise #4: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

Total Paid-In Capital by Common

Stockholders

$530,000

Retained Earning

170,000

Total Stockholders' Equity

$700,000

Figure 4

Tasks:

1. Record the transactions in general journal form.
2. Prepare the stockholders' equity section at year-end using the Blueprint as a guide.
3. Issue 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.

• June5Mountain View Corporation purchased 1,000 shares of treasury stock at $34.
• June 25The board of directors voted a $0.20 per share cash dividend payable on July 20 to stockholders of record on July 4.
• July20Cash dividend declared on June 25 is paid.
• Sept. 10Sold 300 shares of the treasury stock at $43 per share.
• Sept. 30Sold 700 shares of the treasury stock at $33 per share.
• Oct. 15The 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 iscurrently $50 per share.
• Dec. 31Closed the net income of $70,000 in the Income Summary account to Retained Earnings.