On January 1, 2017, Prasad SpA had the following equity accounts. Share CapitalOrdinary (25 par value, 48,000 shares issued and outstanding) 1,200,000, Share PremiumOrdinary 200,000, Retained Earnings 600,000.

During the year, the following transactions occurred. Feb. 1 Declared a 1 cash dividend per share to shareholders of record on February 15, payable March 1. Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 5-for-1 share split. Prior to the split, the market price per share was 36. July 1 Declared a 10% share dividend to shareholders of record on July 15, distributable July 31. On July 1, the market price was 7 per share.

July 31: Issued the shares for the share dividend.

Dec. 1: Declared a 0.40 per share dividend to shareholders of record on December 15, payable January 5, 2018.

Dec 31: Determined that net income for the year was 350,000. Instructions (a) Journalize the transactions and the closing entries for net income and dividends. (b) Enter the beginning balances, and post the entries to the equity accounts. (Note: Open additional equity accounts as needed.) (c) Make an equity section at December 31.