North Pole Incorporated had the following select transactions in 20213 (Click the icon to view the transactions.) Anna Winter, ovwner of Water Way Company, decides to start a new company that will be operated as a corporation, North Pole Incorporated (NPI). This company will sell outdoor clothing and equipment. Read the requirements. Requirement 1. Journalize the transactions. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Jan. 1: Issued 120,000 shares of $2 par value common stock for a total of $1,440,000. Credit Accounts and Explanation Date Debit Jan. 1 Jan 10: Issued 100,000 shares of 2% , S5 par value preferred stock in exchange for land with a market value of $1,800,000. Accounts and Explanation Credit Date Debit Jan. 10 Dec. 15: Declared total cash dividends of S12,000. Accounts and Explanation Date Debit Credit Dec. 15 Dec. 20: Declared a 3% common stock dividend when the market value of the stock was $13.00 per share. Credit Date Accounts and Explanation Debit Review the journal entries from Requirement 1. Dec. 20 North Pole Incorporated Balance Sheet (Partial) December 31, 2021 Paid-In Capital: Dec, 31: Paid the cash dividends. Accounts and Explanation Credit Date Debit Dec. 31 Total Paid-In Capital Dec. 31: Distributed the stock dividend. Total Stockholders' Equity Credit Date Accounts and Explanation Debit Dec. 31 Choose from any list or enter any number in the input fields and then continue December 31, 2021. Assume net income for the year was $391,000. Requirement 2. Calculate the balance in Retained Eamings Complete the table below to calculate the balance in Retained Earnings on December 31, 2021. (Complete all answer boxes. Enter a "0" for any zero balances.) Retained Earnings, Jan. 1, 2021 Plus stock Requirements nation 1. Journalize the transactions. 2. Calculate the balance in Retained Earnings on December 31, 2021. Assume net income for the year was $391,000. 3. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021 shares at cost shares issued and outstanding erred Print Done nation aid-In Capital Cash Cash Dividends u Declared a cash dividend. land with Common Stcck-$2 Par Valuer Common Stock Dvidend Distributable Declared a 3% stock dividend Deb uDividends Payable-Common land with a market valu Issued 3% stock dividend. Dividends Payable-Preferred Debit Cred Issued common stock at a premium. Issued common stock at par Land Paid-In Capital in Excess of Par Common Paid-In Capital in Excess of Par-Preferred Issued common stock in exchange for land. Preferred Stock-$5 Par Value North Pole Incorporated Issued preferred stock in exchange for land. Stock Dividends Payment of cash dividend a to the n Balance Sheet (Partial) r Purchased treasury stock. December 31, 2021 Paid-In Capital: Cash dividends declared Common Stock-$2 Par Value: Issuance of common stock Paid-In Capital in Excess of Par-Common Issuance of preferred stock Paid-In Capital in Excess of Par-Preferred Net income Preferred Stock-2 % , $ 5 Par Value; ection Retained Earnings Stock dividends declared Total Paid-In Capital L
