There were no dividends in arrears on preferred stock. During 2010 the company had the following transactions and events

July 1 Declared a $0.50 dividend on common stock

Sept 1 Paid cash dividend declared on July1

Dec 1 Declared a 10% stock dividend on common stock. Market price $ 16 per share. Dec 15 Declared a cash dividend on preferred stock payable January 31, 2011

Dec31 Net income for the year was $380,000

1. Journalize the transactions and closing entry for net income

2. Prepare the Stockholders Equity Section of the balance sheet at December 31, 2010

On January 1, 2009 Abdella Corporation had $1,000,000 of common stock outstanding that was issued at par and retained earnings of $750,000. The company issued 60,000 shares of common stock at par on July 1 and earned net income of $400,000 for the year Journalize the declaration of a 15% stock dividend on December 10 for the following independent assumptions 1. Par value $10 and market value $18

2. Par value $5 and market value $20