1. Hope Company has common stock ($8 par value, 220,000 shares issued and outstanding) $1,760,000 on 2020 During the year, the following transactions occurred.

March 1 Declared a $2.00 cash dividend per share to stockholders. Record on March 14.

May 1 Paid the dividend declared in March.

May 20 Announced a 2-for-1 stock split. Prior to the split, the market price per share was$20.

Aug 1 Declared a 10% stock dividend to stockholders, record on August 15, distributable August 31. On August 1, the market price of the stock was $8 per share.

Aug 31 Issued the shares for the stock dividend.

Dec 1 Declared a $2.20 per share dividend to stockholders. Record on December 15.

Dec 31 Determined that net income for the year was $1,200,000.

Instructions

Journalize the transactions and the closing entries for net income, stock dividends, and cash dividends.