On January 1, 2020, Cullumber Corporation had the following stockholders' equity accounts. Common Stock ($26 par value, 58,500 shares issued and outstanding) $1,521,000 Paid-in Capital in Excess of Par-Common Stock 192,000 Retained Earnings 622,000 During the year, the following transactions occurred. Feb. Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1. 1 Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $38. July 1 Declared a 15% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share. 31 Issued the shares for the stock dividend. Dec. 1 Declared a $0.40 per share dividend to stockholders of record on December 15, payable January 5, 2021. 31 Determined that net income for the year was $359,000. Date Account Titles and Explanation Debit Credit Feb. 1 V Cash Dividends 58,500 Dividends Payable Mar. 1 Dividends Payable 58,500 Cash Apr.1 V No Entry No Entry July 1 Stock Dividends 245,700 Common Stock Dividends Distributable Paid-in Capital in Excess of Par-Common Stock July 31 Common Stock Dividends Distributable 228,150 Common Stock Dec. 1 Cash Dividends 53,820 Dividends Payable Dec. 31 7 Income Summary 359,000 Dividends Payable Dec. 31 Income Summary 359,000 Retained Earnings (To close net income) Dec. 31 Retained Earnings 245,700 Stock Dividends (To close stock dividends) Dec. 31 Retained Earnings 112,320 Cash Dividends (To close cash dividends) e Textbook and Media Solution Common Stock Date Explanation Ref Debit Credit Balance Jan. 1 V Balance 1,521,000 July 31 1,521,000 1,749,150 Common Stock Dividends Distributable Date Explanation Ref Debit Credit Balance July 1 V 228,150 228,150 July 31 228,150 Paid-in Capital in Excess of Par-Common Stock Date Explanation Ref Debit Credit Balance Balance Retained Earnings Date Explanation Ref Debit Credit Balance Balance v Net income Strock dividend Retained Earnings Balance Date Credit Explanation Ref Debit V Balance V Net income Stock dividend Cash dividend Cash Dividends Date Explanation Ref Debit Credit Balance Stock Dividends Date Explanation Ref Debit Credit Balance