Dawls Corporation reported stockholders’ equity on December 31 of the prior year as follows:
common stock, $5 par value, 1,000,000
share authorized, 500,000 shares Issued 2,500,000
paid in capital in excess of par common stock 1,000,000
Retaind earnings 3,000,000
The following selected transactions occurred during the current year:
Feb.15 The board of directors declared a 5% stock divided to stock of record on March 1. payable March 20.The Stock was selling for $8 oar share.
Mar.9 Paid the stock divined.
May.1 A cash dividend of $0.30par share was declared by the board of directors to stockholders of record on May 20. Payable June 1
June.1 Paid the cash Dividend.
Aug.20 The board decided to split the stock 4 for 1 effective on September 1.
Sept.1 Stock split 4 for 1.
Dec.31Earned a net income of $800,000 for the curent year.
Prepare a statement of retained earnings as of December 31 of the current year.