Starborn Manufacturing Co. completed the following transactions during 2018: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Record the transactions in Starbom's general joumal. (Record debits first, then credits. Select the explanation on the last line of the joumal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Jan. 16: Declared a cash dividend on the 5%, $95 par noncumulative preferred stock (1,000 shares outstanding). Declared a $0.50 per share dividend on the 95,000 shares of $4 par value common stock outstanding. The date of record is January 31, and the payment date is February 15. Date Accounts and Explanation Debit Credit Jan 16 Feb. 15: Paid the cash dividends. Date Accounts and Explanation Debit Credit Feb. 15 Declared a cash dividend on the 5%, $95 par noncumulative preferred stock (1,000 shares outstanding). Declared a $0.50 per share dividend on the 95,000 shares of $4 par value common stock outstanding. The date of record is January 31, and the payment date is February 15. Jan. 16 Feb. 15 Paid the cash dividends. Jun. 10 Jul. 30 Split common stock 2-for-1. Declared a 50% stock dividend on the common stock. The market value of the common stock was $12 per share. Distributed the stock dividend. Aug. 15 Oct. 26 Nov. 8 Purchased 5,400 shares of treasury stock at $11 per share. Sold 2,700 shares of treasury stock for $13 per share. Sold 1,600 shares of treasury stock for $7 per share. Nov. 30 1. Record the transactions in Starborn's general journal. 2. Prepare the Starborn's stockholders' equity section of the balance sheet as of December 31, 2018. Assume that Starborn was authorized to issue 1,200 shares of preferred stock and 500,000 shares of common stock. Both preferred stock and common stock were issued at par. The ending balance of retained earnings as of December 31, 2018, is $1,050,000. Jun. 10: Split common stock 2-for-1. Date Accounts and Explanation Debit Credit Jun. 10 Jul. 30: Declared a 50% stock dividend on the common stock. The market value of the common stock was $12 per share. Date Accounts and Explanation Debit Credit Jul. 30 Aug. 15: Distributed the stock dividend. Date Accounts and Explanation Debit Credit Aug. 15 Oct. 26: Purchased 5,400 shares of treasury stock at $11 per share. Date Accounts and Explanation Debit Credit Oct. 26 Nov. 8: Sold 2,700 shares of treasury stock for $13 per share. Date Accounts and Explanation Debit Credit Nov. 8 Nov. 30: Sold 1,600 shares of treasury stock for $7 per share. Date Accounts and Explanation Debit Credit Nov. 30 Requirement 2. Prepare the Starborn's stockholders' equity section of the balance sheet as of December 31, 2018. Assume that Starborn was authorized to issue 1,200 shares of preferred stock and 500,000 shares of common stock. Both preferred stock and common stock were issued at par. The ending balance of retained earnings as of December 31, 2018, is $1,050,000. (Use parentheses or a minus sign for amounts to be subtracted.) Starborn Manufacturing, Co. Balance Sheet (Partial) December 31, 2018 Stockholders' Equity Paid-In Capital: Total Paid-In Capital Total Stockholders' Equity
