The balance sheet of Patrick Management Consulting, Inc. at December 31, 2015, reported the following stockholders’ equity:
Stockholders' Equity
Paid-In Capital:
Common Stock—$12 Par Value; 300,000 shares authorized, 22,000 shares issued and outstanding ..................$ 264,000
Paid-In Capital in Excess of Par—Common...... 340,000
Total Paid-In Capital.............. 604,000
Retained Earnings.............. 163,000
Total Stockholders' Equity...........$ 767,000
During 2016, Patrick completed the following selected transactions:
Feb. 6 Declared a 5% stock dividend on common stock. The market value of Patrick's stock was $20 per share.
15 Distributed the stock dividend.
Jul. 29Purchased 1,800 shares of treasury stock at $20 per share.
Nov. 27 Declared a $0.20 per share cash dividend on the common stock outstanding.
Requirements
1. Record the transactions in the general journal.
2. Prepare a retained earnings statement for the year ended December 31, 2016.
Assume Patricks net income for the year was $82,000.
3. Prepare the stockholders’ equity section of the balance sheet at December 31, 2016.