Lucky Enterprises deals in furniture &fixtures. Its stockholders’ equity accounts with balances on January 1, 2020 are as follows:
Common Stock, $20 stated value (500,000 shares authorized, 375,000 shares issued)$7,500,000
Paid-In Capital in Excess of Stated Value—Common Stock     825,000
Retained Earnings33,600,000
Treasury Stock (25,000 shares, at cost)     450,000
The following selected transactions occurred during the year:
Jan. 22 Paid cash dividends of $0.08 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $28,000.
Apr. 10Issued 75,000 shares of common stock for $24 per share.
June  6 Sold all of the treasury stock for $26 per share.
July  5Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share.
Aug. 15 Issued the certificates for the dividend declared on July 5.
Nov. 23Purchased 30,000 shares of treasury stock for $19 per share.
Dec. 28Declared a $0.10 per share dividend on common stock.
Dec. 31 Closed the credit balance of the income summary account, $1,125,000.
Dec. 31Closed the two dividends accounts to Retained Earnings.
Required:
1.Enter the January 1 balances in T-accounts for the stockholders’ equity accounts listed and prepare T-accounts for the following:
•Paid-In Capital from Sale of Treasury Stock;
•Stock Dividends Distributable;
•Stock Dividends;
•Cash Dividends.
2.Show how an amount of $28,000 was calculated and declared on December,01,2019
3.Journalize the entries to record the transactions, and post to the selected accounts
4. Prepare a retained earnings statement for the year ended December 31, 2020.
5. Prepare the Stockholders’ Equity section of balance sheet as on December 31, 2020.