i Reference - X Date Debit Credit Jan. 1 60,000 Accounts and Explanation Cash Common Stock-$1 Par Value Paid-In Capital in Excess of ParCommon Issued common stock at par. 30,000 30,000 300,000 Jan. 10 Land Preferred Stock-$7 Par Value Paid In Capital in Excess of ParPreferred Issued preferred stock in exchange for land. 70,000 230,000 35,000 Dec. 15 Cash Dividends Dividends PayablePreferred Dividends PayableCommon Declared a cash dividend. 4,200 30,800 22,500 7,500 Dec. 20 Stock Dividends Common Stock Dividend Distributable Paid In Capital in Excess of ParCommon Declared a 5% stock dividend. 15,000 4,200 30,800 Dec. 31 Dividends PayablePreferred Dividends PayableCommon Cash Payment of cash dividend. 35,000 7,500 Dec. 31 Common Stock Dividend Distributable Common Stock$1 Par Value Issued 5% stock dividend. 7,500 Print Done Requirement 2. Calculate the balance in Retained Earnings on December 31, 2021. Assume the balance on January 1, 2021 was $5,000 and net income for the year was $463,000. Complete the table below to calculate the balance in Retained Earnings on December 31, 2021. $ 5,000 Retained Earnings, Jan. 1, 2021 Plus: Net income 463,000 Less Cash dividends declared (35,000) Stock dividends declared (22,500) 410.500 Retained Earnings, Dec. 31, 2021 Requirement 3. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. There was no preferred stock issued prior to the 2021 transactions. Review the journal entries from Requirement 1. Nature Gnome Company Balance Sheet (Partial) December 31, 2021 Paid-In Capital: Total Paid-In Capital Total Stockholders' Equity Requirement 3. Prepare the stockholders' equity section of the balance sheet as of December 3 Review the journal entries from Requirement 1. Nature Gnome Company Balance Sheet (Partial) December 31, 2021 Paid-In Capital: Common Stock-$1 Par Value; Paid-In Capital in Excess of ParCommon Paid-In Capital in Excess of ParPreferred Preferred Stock_6%, $7 Par Value; Retained Earnings TotalDidital Nature Gnome Company Balance Sheet (Partial) December 31, 2021 Paid-In Capital: shares at cost shares issued and outstanding i Reference - X Date Debit Credit Jan. 1 60,000 Accounts and Explanation Cash Common Stock-$1 Par Value Paid-In Capital in Excess of ParCommon Issued common stock at par. 30,000 30,000 300,000 Jan. 10 Land Preferred Stock-$7 Par Value Paid In Capital in Excess of ParPreferred Issued preferred stock in exchange for land. 70,000 230,000 35,000 Dec. 15 Cash Dividends Dividends PayablePreferred Dividends PayableCommon Declared a cash dividend. 4,200 30,800 22,500 7,500 Dec. 20 Stock Dividends Common Stock Dividend Distributable Paid In Capital in Excess of ParCommon Declared a 5% stock dividend. 15,000 4,200 30,800 Dec. 31 Dividends PayablePreferred Dividends PayableCommon Cash Payment of cash dividend. 35,000 7,500 Dec. 31 Common Stock Dividend Distributable Common Stock$1 Par Value Issued 5% stock dividend. 7,500 Print Done Requirement 2. Calculate the balance in Retained Earnings on December 31, 2021. Assume the balance on January 1, 2021 was $5,000 and net income for the year was $463,000. Complete the table below to calculate the balance in Retained Earnings on December 31, 2021. $ 5,000 Retained Earnings, Jan. 1, 2021 Plus: Net income 463,000 Less Cash dividends declared (35,000) Stock dividends declared (22,500) 410.500 Retained Earnings, Dec. 31, 2021 Requirement 3. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. There was no preferred stock issued prior to the 2021 transactions. Review the journal entries from Requirement 1. Nature Gnome Company Balance Sheet (Partial) December 31, 2021 Paid-In Capital: Total Paid-In Capital Total Stockholders' Equity Requirement 3. Prepare the stockholders' equity section of the balance sheet as of December 3 Review the journal entries from Requirement 1. Nature Gnome Company Balance Sheet (Partial) December 31, 2021 Paid-In Capital: Common Stock-$1 Par Value; Paid-In Capital in Excess of ParCommon Paid-In Capital in Excess of ParPreferred Preferred Stock_6%, $7 Par Value; Retained Earnings TotalDidital Nature Gnome Company Balance Sheet (Partial) December 31, 2021 Paid-In Capital: shares at cost shares issued and outstanding