Problem 2 (50%) At the beginning of 2018, Grand Petit Inc, showed the following amounts in the stockholders equity section of its balance sheet: Stoskholders'equity: Capital stock, 2& par value, 200,000 shares authorized 100,000 issued and outstanding Additional paid-i capital: capital stock Total paid-in capital Retained earnings Total shareholders' equity 200.000 2.000.000 2.200.000 1.500.000 3.700.000 Transactions related to the shareholders equity during the year are as follows: Jan. 2nd: Declared a dividend of 1$ per share to stockholders of record on January 31, payable on February 13. Feb. 13: Paid the cash dividend declared on January 3. March 15: The Company purchased 1,000 shares of its own capital stock at a price of $10 per share April 25: Reissued 500 shares of Treasury stock at a price of 13 per share. May 22; Declared a 5 % stock dividend to stockholders on record at June 22 to be distributed on July 1 July 1st: Paid the dividends declared on May 22nd, August 1st: reissued 300 of the 500 remaining shares of treasury stock at a price of $14 per share December 31st: The income summary account, showing net income for the year of $1,520,000 was closed into the retained earnings account. December 31t: The $100,000 balance in the dividend account was closed into the retained earnings account. a) Prepare in General Journal form the entries to record the above transactions. (20% ) b) Prepare the stockholders' equity section of the balance sheet as of December 31, 2018 20 % ) c) Compute the maximum cash dividend per share that legally could be declared at December 31, 2018. (10%) www.euruni.edu