I am a little confused on Problem 13-65 in the Intermediate Accounting 19E Stice & Stice Book. Could I get a solution for this problem. Thank you.

Here is the Problem

The Stockholders' Equity section of Nilsson Corporation's ballance sheet as of Dec. 31, 2014, is as follows:

Common stock ($5 par, 500,000 Shares authorized, 275,000 issued and outstanding.........................$1,375,000

Paid-in capital in excess of par...................................................................550,000

Total Paid-in capital.................................................................................... $1,925,000

Inappropriate retained earnings.................................................................$1,335,000

Appropriated retained earnings.................................................................500,000

Total retained earnings............................................................................... 1,835,000

Total stockholders's equity................................................................... $3,760,000

Nilsson Corporation had the following stockholders' equity transactions during 2015:

Jan. 15 Completed the building renovation, for which $500,000 of retained earnings had been restricted. Paid the contractor $485,000, all of which is capitalized.

Mar. 3 Issued 100,000 additional shares of the common stock for $8 per share

Mar. 18 Declared a dividend of $1,50 per share to be paid on July 31,2015, to stockholders of record on June 30,2015

June 19 Approved additional building renovation to be funded internally. The estimated cost of the project is $400,000, and retained earnings are to be restricted for that amount

July 31 Paid the dividends

Nov. 12 Declared a property dividend to be paid on Dec. 31,2015, to stockholders of record on Nov. 30, 2015. The dividend is to consist of 35,000 shares of Hampton Inc. stock that are currently recorded in Nilsson's books at $9 per share. The fair market value of the stock on Nov. 12 is $13 per share.

Dec. 31 Reported $885,000 of net income on Dec. 31,2015, income statement. (Assume that revenues and expenses were closed to a temporary account, Income Summary. Use this account to complete the closing process.) In addition, the stock was distributed in satisfaction of the property dividend. The Hampton stock closed at $14 per share at the end of the days' Trading.

Instructions:

1. Make all the necessary journal entries for Nilsson to account for the transactions effecting stockholders' equity.

2. Prepare the Dec. 31, 2015, Stockholders' Equity section of the balance sheet for Nilsson.