Retained Earnings: Transactions and Statement

The stockholders equity of Ranger Corporation at January 1 appears below:

Common stock, $10 par value, 200,000 shares authorized;
80,000 shares issued and outstanding	$800,000
Paid-in capital in excess of par value	480,000
Retained earnings	305,000

During the year, the following transactions occurred:

May	12	Declared a 15 percent stock dividend; market value of the common stock was $22 per share.
June	6	Issued the stock dividend declared on May 12.
Dec.	5	Declared a cash dividend of $1.50 per share.
	30	Paid the cash dividend declared on December 5.

Required

a. Prepare journal entries to record the foregoing transactions.

Options:

Options:

Required a. Prepare journal entries to record the foregoing transactions. General Journal Date Description Debit May 12 Stock Dividends Distributable Credit $ . Declared stock dividend. Jun.06 Common Stock Issued common shares as stock dividend. Dec.05 Declared a cash dividend on common stock outstanding. > Dec.30 > Paid cash dividend declared on Dec. 5. ec.30 for the Pal Stock Dividends Stock Dividends Distributable Prepare Paid-in-Capital in Excess of Par Value Common Stock not us Cash Dividends Dividends Payable Cash For the Year Ended December 31 PLULCIIICIIL VI INCLICU LUIS b. Prepare a statement of retained earnings. Net income for the year is $275,000. Do not use negative signs with your answers. RANGER CORPORATION Statement of Retained Earnings For the Year Ended December 31 Retained Earnings, January 1 $ Add: Less: Stock Dividends Declared > $ Net Income Retained Earnings, December 31 Cash Dividends Declared