Requirements

Record the transactions in Summerborn Manufacturing Co$.\text{'}$s general journal.

Prepare the Summerborn Manufacturing Co$.\text{'}$s stockholders' equity section of the balance sheet as of December $31,2025.$ Assume that Summerborn Manufacturing Co$.$ was authorized to issue $4,000$ shares of preferred stock and $200,000$ shares of common stock. Both preferred stock and common stock were issued at par. The ending balance of retained earnings as of December $31,2025,$ is $$1,090,000.$

Print

Done

Transactions

Jan. $16$ Declared a cash dividend on the $6\%,$$$105$ par noncumulative preferred stock shares outstanding$).$ Declared a $$0\mathrm{.}70$ per share dividend on the $30,000$ shares of $$4$ par value common stock outstanding. The date of record is January $31,$ and the payment date is February $15.$

Feb. $15$ Paid the cash dividends.

Jun. $10$ Split common stock $2-$for$-1.$

Jul. $30$ Declared a $30\%$ stock dividend on the common stock. The market value of the common stock was $$2$ per share.

Aug. $15$ Distributed the stock dividend.

Oct. $26$ Purchased $8,000$ shares of treasury stock at $$9$ per share.

Nov. $8$ Sold $4,000$ shares of treasury stock for $$10$ per share.

Nov. $30$ Sold $1,400$ shares of treasury stock for $$5$ per share.