On January 1, 2011, Giants Inc. had the following account balances in its stockholder's equity accounts:

Preferred Stock, $100 par, 10,000 shares outstanding $1,000,000

Paid-in capital in excesss of par - preferred $ 100,000

Common Stock, $1 par , 250,000 shares issued $250,000

Paid in Capital in excess of par - common $500,000

Retained Earnings $2,000,000

Treasury Stock, at cost, 5000 shares $ 25,000

During 2011, Giants Inc. had the following transactions:

Jan 15: Declared a property dividend of 100,000 shares of Jets Co. (book value , $10 per share, market value $9 per share).

Feb 17: Distributed the property dividend

April 10: a 2-for-1 stock split was declared on outstanding common stock and effected in the form of a stock dividend. The market value of the stock was $4 on this date

July 18: Declared and distributed a 3% stock dividend on outstanding common stock. The market value per share was $5 on this date.

December 1: Declared a fifty cents per share cash dividend on the outstanding common shares.

December 20: Paid the cash dividend.

Required:

A. Record the above transactions and events in journal format.

B. Prepare the stockholder's equity section of Giants Inc. balance sheet as of December 31, 2011. Assume net income is $500,000 for 2011.