Help Needed!

Retained Earnings: Transactions and Statement The stockholders' equity of Cyclone Corporation at January 1 follows: 6 Percent preferred stock, S25 par value, 40,000 shares authorized; 20,000 shares issued and outstanding $500,000 Common stock, $5 par value, 300,000 shares authorized: 80,000 shares issued and outstanding 400,000 Paid capital in excess of par value-common stock 560,000 830,000 Retained earnings $2,290,000 Total Stockholders Equity The following transactions, among others, occurred during the year: June 18 Declared a 50 percent stock dividend on all outstanding shares of common stock. The market value of the stock was $14 per share. July 1 ssued the stock dividend declared on June 18. Declared the annual cash dividend on the preferred stock and a cash dividend of S1.30 per share on the common stock, payable on January 20 to stockholders Dec. 20 of record on December 28. Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of retained earnings. The net income for the year is $379,000. General Journal Debit Credit Date Description 0 0 Jun 18 0 Declared stock dividend. 0 0 sued common shares as stock dividend 0 Dec 20 0 Dividends Payable Common Stock Declared a cash dividend on preferred and common stock outstanding