Retained Earnings: Transactions and Statement The stockholders' equity of Cyclone Corporation at January 1 follows & Percent preferred stock $25 par value, 50.000 shares authorized 35.000 shares issued and outstanding $875,000 Common stock, $5 par value, 450.000 shares authorized; 95,000 shares Issued and outstanding 475,000 Paid-in capital in excess of par value-Common stock 560,000 Retained earnings Total Stockholders' Equity 830,000 $2,740,000 The following transactions, among others, occurred during the year: June 18 Declared a 50 percent stock dividend on all outstanding shares of common stock. The market value of the stock was $18 per share. My Issued the stock dividend declared on June 18. Dec. 20 Declared the annual cash dividend on the preferred stock and a cash dividend of $1.50 per share on the common stock, payable on January 20 to stockholders of record on December 28. Required a. Prepare journal entries to record the foregoing transactions Date Jun 18 Stock Dividends General Journal Description Debit Credit Stock Dividends Distributable Declared stock dividend M1 Stock Dividends Distributable Common Stock Issued common shares as stock dividend Dec 20 Cash Dividends Dividends Payable-Preferred Stock Didends Payable Common Stock Declared a cash dividend on preferred and common stock outstanding OM 0~ 0~ OM 0 OM b. Prepare a statement of retained earnings. The net income for the year is $395,000. Do not use negative signs with your answers. CYCLONE CORPORATION Statement of Retained Earnings For the Year Ended December 31 Retained Earnings, January 1 Add Net Income Less Cash Dividends Declared Stock Dividends Declared Retained Earnings, December 31 Check 0x 14 0% 0x 0 M $