Retained Earnings: Transactions and Statement

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

Common stock, $10 par value, 300,000 shares authorized;
105,000 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 9 percent stock dividend; market value of the common stock was $21 per share.
June	6	Issued the stock dividend declared on May 12.
Dec.	5	Declared a cash dividend of $1.00 per share.
	30	Paid the cash dividend declared on December 5.

Required

a. Prepare journal entries to record the foregoing transactions.

b. Prepare a statement of retained earnings. Net income for the year is $303,000.

Do not use negative signs with your answers.