On January 1, 2020, Seek Discomfort Ltd. had the following equity accounts.

Share Capital - Ordinary ($12 par value, 90,000 shares issued and outstanding) $1,080,000

Share Premium - Ordinary 600,000

Retained Earnings 780,000

During the year, the following occurred.

Jan. 18 Declared a $1.50 cash dividend per share to shareholders of record on January 31, payable February 18. Feb. 18 Paid the dividend declared in January. Apr. 5 Declared a 10% share dividend to shareholders of record on April 30, distributable May 5. On April 5, the market price of the shares was 18 per share. May 5 Issued the shares for the share dividend. July 12 Announced a 2-for-1 share split. The market price per share prior to the announcement was $18. Dec. 1 Declared a $0.80 per share cash dividend to shareholders of record on December 15, payable January 10, 2021

Dec. 31 Determined that net income for the year was $3500,000.

Instructions

a. Journalize the transactions and the closing entries for net income and dividends.

b. Prepare an equity section at December 31.