On January 1, 2018, the Brown Corporation had 200,000 shares of $10 par value common stock outstanding that was issued at par and retained earnings of $1,000,000. The company issued 100,000 shares of common stock at $13 per share on July 1. On December 15, the board of directors declared a $1.6 per share cash dividend to stockholders of record on December 31, 2018, payable on January 15, 2019. Net income for 2018 was $500,000.

Instructions: Prepare journal entries to record the above transactions and prepare the stockholders equity section of the balance sheet.

1. Journalize the issuance of stock on July 1, the declaration of the cash dividend on December 15, 2018, and the payment of cash dividend on January 15, 2019.

2. Prepare the stockholders equity section of the balance sheet for Brown Corporation on December 31, 2018.

Stockholders equity
Paid-in capital
	Capital stock
	Common stock, $10 par value
	Paid-in capital in excess of par value
	Total paid-in capital
Retained earnings
Total stockholders equity