Park Company reported the following in the statement of shareholders equity at 1/1/18:

Common stock, $5 par value, authorized 200,000 shares,

issued 100,000 $ 500,000

Additional paid-in capital 1,500,000

Retained earnings 516,000

$2,516,000

Less: treasury stock, at cost, 5,000 shares (40,000)

Total shareholders equity $2,476,000

The following events occurred in 2018:

3/1 1,000 shares of treasury stock were sold for $10,000

6/15 A 30% stock dividend was declared when the market value of the stock was $11. The shares will be distributed on 7/31 to holders of record on 7/1.

9/9 9,000 of previously unissued common stock sold for $12 per share.

10/1 A 2-for-1 stock split resulted in the common stocks par value being halved.

12/15 A cash dividend of $.50 per share was declared.

12/31 Net income for 2018 was $473,500.

Required:

Prepare the journal entries required for the 2018 events affecting equity.

Prepare the equity section of the balance sheet at 12/31/18.

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