enter the january 1 balances in t accounts for the stockholders rsquo equity account 554416

Common Stock, $8 stated value (250,000 shares authorized, 175,000 shares issued)

$1,400,000

Paid-In Capital in Excess of Stated Value

700,000

Retained Earnings

1,840,000

Treasury Stock (40,000 shares, at cost)

400,000

Jan. 9.

Paid cash dividends of $0.10 per share on the common stock. The dividend had been properly recorded when declared on November 30 of the preceding fi scal year for $13,500.

Mar. 15.

Sold all of the treasury stock for $540,000.

May 13.

Issued 50,000 shares of common stock for $680,000.

June 14.

Declared a 2% stock dividend on common stock, to be capitalized at the market price of the stock, which is $15 per share.

July 16.

Issued the certificates for the dividend declared on June 14.

Oct. 30.

Purchased 25,000 shares of treasury stock for $320,000.

Dec. 30.

Declared a $0.12-per-share dividend on common stock.

31.

Closed the credit balance of the income summary account, $775,000.

31.

Closed the two dividends accounts to Retained Earnings.