The stockholders' equity of Ranger Corporation at January 1 appears below:

During the year, the following transactions occurred:

May 12 Declared a 15 percent stock dividend; market value of the common stock was \(\$ 22\) per share.

June 6 Issued the stock dividend declared on May 12.

Dec. 5 Declared a cash dividend of \(\$ 1.50\) per share.

30 Paid the cash dividend declared on December 5 .

Required

a. Prepare journal entries to record the foregoing transactions.

b. Prepare a statement of retained earnings. Net income for the year is \(\$ 275,000\).

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Common stock, $10 par value, 200,000 shares authorized; 80,000 shares issued and outstanding.. $800,000 Paid-in capital in excess of par value... 480,000 Retained earnings. 305,000