Problem 14-2A

On December 31, 2016, LeBlanc Corporation had the following shareholders equity accounts:

LEBLANC CORPORATION Balance Sheet (partial) December 31, 2016
Shareholders equity
Common shares (unlimited number of shares authorized, 90,000 issued)		$1,100,000
Retained earnings		540,000
Total shareholders equity		$1,640,000

During the year, the following transactions occurred:

Jan.		15		Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15.
July		1		Announced a 3-for-2 stock split. The market price per share on the date of the announcement was $15.
Dec.		15		Declared a 10% stock dividend to shareholders of record on December 30, distributable on January 15. On December 15, the market price of each share was $10; on December 30, $12; and on January 15, $11.
		31		Determined that profit before income tax for the year was $450,000. The company has a 30% income tax rate.

1. Journalize the transactions and closing entries.

2. Enter the beginning balances and post the entries in part (a) to the shareholders equity accounts.

3. Prepare the shareholders equity section of the balance sheet at December 31, 2017.