Journal entry worksheet 1. Record the closing entry of net income to retained earnings. 2. Record the payment of the cash dividend. 3. Record the issuance of the stock dividend. 4. Record the issuance of the property dividend. 5. Record the sale of treasury shares.

The statement of retained earnings of Gary Larson Publishers is presented below. GARY LARSON PUBLISHERS Statement of Retained Earnings For the Year Ended December 312021 (5 in millions) Retained earnings, January 1 Add: Net income Deduct: Cash dividend Stock dividend (1 million shares of 31 par common stock) Property dividend (Garfield Company preferred stock held as a short-term investment) Sale of treasury stock (cost $45 million) Retained earnings, December 31 Required: For the transactions that affected Larson's retained earnings, reconstruct the journal entries that can be used to determine cash flows to be reported in a statement of cash flows. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions (i.e.. 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet Record the closing entry of net income to retained earnings. Note: Enter debits before credits Debit Credit Event General Journal