Retained Earnings: Transactions and Statement The stockholders' equity accounts of Rayburn Corporation as of January 1 appear below: Common stock, $1 O par value, 400,000 shares authorized; 160,000 shares issued and outstanding Paid-in capital in excess of par value Retained earnings $800,000 920,000 513,000 During the year, the following transactions occurred June 7 Declared a 20 percent stock dividend; market value of the common stock was $15 per share June 28 Issued the stock dividend declared on June 7 Dec. 5 Declared a cash dividend of $1.50 per share. Dec. 26 Paid the cash dividend declared on December 5. Required a. Prepare journal entries to record the foregoing transactions. General Journal Date Description Debit Credit Jun.07 Stock Dividends Distributable Declared stock dividend Jun.28 Common Stock Issued common shares as stock dividend