Prepare journal entries to record the above transactions.

Problem 2: On January 1, 2020, Mather Corporation had Retained Earnings of $625,000. During the year, Mather had the following selected transactions:

1. Declared stock dividends of $40,000.

2. Declared cash dividends of $50,000.

3. A 2-for-1 stock split involving the issue of 200,000 shares of $5 par value common stock for 100,000 shares of $10 par value common stock.

4. Suffered a net loss of $80,000.