.

Starborn

Manufacturing Co. completed the following transactions during

2024:

Jan. 16	Declared a cash dividend on the 5%, $96 par noncumulative preferred stock (950 shares outstanding). Declared a $0.30 per share dividend on the 115,000 shares of $8 par value common stock outstanding. The date of record is January 31, and the payment date is February 15.
Feb. 15	Paid the cash dividends.
Jun. 10	Split common stock 2-for-1.
Jul. 30	Declared a 50% stock dividend on the common stock. The market value of the common stock was $8 per share.
Aug. 15	Distributed the stock dividend.
Oct. 26	Purchased 5,400 shares of treasury stock at $11 per share.
Nov. 8	Sold 2,700 shares of treasury stock for $13 per share.
Nov. 30	Sold 1,600 shares of treasury stock for $7 per share.

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, 2024. Assume that Starborn was authorized to issue 1,500 shares of preferred stock and 400,000 shares of common stock. Both preferred stock and common stock were issued at par. The ending balance of retained earnings as of December 31, 2024, is $1,050,000. Jul. 30: Declared a 50% stock dividend on the common stock. The market value of the common stock was $8 per share.