Prepare dividend entries and equity section (LO 5,7) P11-4A On January 1, 2017, Prasad SpA had the following equity accounts. Share Capital-Ordinary (25 par value, 48,000 shares issued and outstanding) 1,200,000 Share Premium-Ordinary 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, distribut- able July 31. On July 1, the market price was 7 per share. www.downloadslide.net 586 11 Corporations: Organization, Share Transactions, Dividends, and Retained Earnings 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 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) Total equity 2,196,400 (c) Prepare an equity section at December 31