On January 1, 1997, the Casey Stengel Corporation had the following stockholders' equity accounts:

During the year, the following transactions occurred:
Feb. 1 Declared a \(\$ 1\) cash dividend per share to stockholders of record on February 15, payable March 1.
Mar. 1 Paid the dividend declared in February.
Apr. 1 Announced a 4 for 1 stock split. Prior to the split, the market price per share was \(\rightarrow\) \(\$ 36\).
July \(1 \$\) Declared a \(5 \%\) stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was \(\$ 10\) per share.
31 Issued the shares for the stock dividend.
Dec. 1 Declared a \(\$ .50\) per share dividend to stockholders of record on December 15, payable January 5,1996 .
31 Determined that net income for the year was \(\$ 325,000\).
\section*{Instructions}

(a) Journalize the transactions and closing entries.

(b) Enter the beginning balances and post the entries to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.)

(c) Prepare a stockholders' equity section at December 31.

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Common Stock ($20 par value, 60,000 shares issued and outstanding) $1,200,000 Paid-in Capital in Excess of Par Value 200,000 Retained Earnings 500,000