The company has not declared a dividend since 1995. (Rudnicki Corp. uses a separate dividend account for each type of stock.) 5. On December 27, the company pays the dividend declared on December 2. 6. On December 29, the company declares a 2:1 stock split on the company’s common stock. REQUIRED:

a. Prepare the necessary entries for each transaction.

b. Assume that Rudnicki Corp. earned net income of $899 during 1997. Prepare the stock¬ holders’ equity section as of December 31, 1997.