The equity sections for Lauderdale Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders' Equity (January 1) Common stock-$8 par value, 130,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Stockholders' Equity (December 31) Common stock-$8 par value, 130,000 shares authorized, 56,370 shares issued, 4,500 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($72,000 restricted by treasury stock) Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during the year. January 5 Declared a $2.00 per share cash dividend, payable on January 10. March 20 Purchased treasury stock for cash. April 5 Declared a $2.00 per share cash dividend, payable on April 10. July 5 Declared a $2.00 per share cash dividend, payable on July 10. July 31 Declared a 14% stock dividend when the stock's market value was $18 per share. August 14 Issued the stock dividend that was declared on July 31. October 5 Declared a $2.00 per share cash dividend, date of record October 10. $ 400,000 60,000 330,000 $ 790,000 $ 450,960 123,700 590,000 1,164,660 (72,000) $ 1,092,660 General Requirement Journal General Ledger Trial Balance Cash Dividends Stock Dividend The following transactions and events affected its equity during the year. Prepare the journal entry necessary to record each event, and then agree the year-end balances with the December 31 Stockholders' Equity statement given above. Requirement General Journal General Ledger Trial Balance Cash Dividends Stock Dividend Note: The ending equity balances should agree with the December 31 Statement of Stockholders' Equity. Dates: January 01 to: January 01 General Ledger Account Cash No. Date January 01 Debit Credit Balance 1,550,400 No. Date Common stock Debit Credit Balance January 01 400,000 Paid-in capital, Common Retained earnings No. Date Debit Credit Balance No. January 01 60,000 Date January 01 Debit Credit Balance 330,000 Income summary No. Date Debit January 01 Credit Balance (760,400) Requirement General Journal General Ledger Trial Balance Cash Dividends Stock Dividend Cash Common stock Paid-in capital, Common Retained earnings Income summary Total Lauderdale Group Trial Balance January 01, 2021 Account Title < General Ledger Cash Dividends > Debit Credit $ 1,550,400 400,000 60,000 330,000 760,400 $ 1,550,400 $ 1,550,400 Requirement General Journal General Ledger Trial Balance Cash Dividends Stock Dividend Calculate the dollar amount of each cash dividend. Calculation of Cash Dividends How many common shares are outstanding? Dividend per share Total cash dividend January 05 Dates: January 01 to: January 01 April 05 July 05 October 05 < Trial Balance Stock Dividend > Requirement General Journal General Ledger Trial Balance Cash Dividends Stock Dividend Calculate the amount of retained earnings to be capitalized as a result of the stock dividend. Capitalization of retained earnings due to stock dividend: Number of shares outstanding on July 30 Percentage of stock dividend Number of shares to be issued Amount to be capitalized per share Total amount to be capitalized Dates: January 01 to: January 01 < Cash Dividends Stock Dividend >