Retained Earnings: Transactions and Statement The stockholders' equity accounts of Rayburn Corporation as of January 1 appear below: Common stock, $6 par value, 400,000 shares authorized; 170,000 shares issued and outstanding Paid-in capital in excess of par value Retained earnings During the year, the following transactions occurred: June 7 Declared 10 percent stock dividend; market value of the common stock was $12 per share. June 28 Issued the stock dividend declared on June 7. 5 Declared a cash dividend of $1.35 per share. Dec. Dec. 26 Paid the cash dividend declared on December 5. Required a. Prepare journal entries to record the foregoing transactions. General Journal Date Jun.07 Stock Dividends Stock Dividends Distributable Paid-in-Capital in Excess of Par Value Declared stock dividend. Jun.28 Stock Dividends Distributable Common Stock Description Issued common shares as stock dividend. Dec.05 Cash Dividends $1,020,000 920,000 513,000 Dec.26 Dividends Payable Cash Dividends Payable Declared a cash dividend on common stock outstanding.

Retained Earnings: Transactions and Statement The stockholders' equity accounts of Rayburn Corporation as of January 1 appear below: During the year, the following transactions occurred: Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of retained earnings. The net income for the year is $422,000. Do not use negative signs with your answers