Reference no: EM131800529
Question - 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.31 Earned a net income of $800,000 for the curent year.
Prepare a statement of retained earnings as of December 31 of the current year.
Prepare a statement of retained earnings as of December 31 of the current year.