On December 31, 2020, LeBlanc Corporation had the following shareholders' equity accounts:

Record and post transactions; prepare shareholders' equity section.

LEBLANC CORPORATION

Balance Sheet (partial)

December 31, 2020

Shareholders' equity

Common shares (unlimited number of shares authorized, 90,000 issued)

$1,100,000

Retained earnings

540,000

Total shareholders' equity

$1,640,000

During the year, the following transactions occurred:

Jan.15 Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15.

July1 Announced a 3-for-2 stock split. The market price per share on the date of the announcement was $15.

Dec.15 Declared a 10% stock dividend to shareholders of record on December 30, distributable on January 15. On December 15, the market price of each share was $10; on December 30, $12; and on January 15, $11.

31 Determined that profit before income tax for the year was $450,000. The company has a 30% income tax rate.

Instructions

a.Journalize the transactions and closing entries for 2021.

b.Create general ledger accounts and enter the beginning balances from the December 31, 2020, partial balance sheet. Post the entries in part (a) to the shareholders' equity accounts. (Note: Open additional shareholders' equity accounts as needed.)

c.Prepare the shareholders' equity section of the balance sheet at December 31, 2021.