1. Record the transactions in the general journal. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.).

2. Prepare a retained earnings statement for the year ended December 31, 2021. Net income for the year was $87,000.All construction was completed on October 31. Prepare the year-end journal entry to record depreciation expense assuming no depreciation has been recorded yet.

3. Prepare the stockholders' equity section of the balance sheet at December 31, 2021.

Part 1: Record Transactions

Choose from the following list to use for the statement.

• Stock Dividends

• Paid-In Capital in Excess of ParCommon

• Common Stock Dividend Distributable

• Common Stock Dividend Distributable

• Common Stock$10 Par Value

• Treasury StockCommon

• Checking

• Cash Dividends

• Dividends PayableCommon

• Cash

Part 2: Prepare Retained Earning Statement year end Dec. 31, 2021

Choose from the following list to use for the statement.

• Retained Earnings, January 1, 2020

• Stock dividends declared

• Net income for the year

• Retained Earnings, December 31, 2021

• Cash dividends declared

Part 3: Prepare the stockholders equity section of balance sheet at Dec. 31, 2021

Choose from the following list to use for the statement.

• Paid-In Capital

• Total Stockholders' Equity

• Common Stock$10 Par Value

• shares authorized

• Paid-In Capital in Excess of ParCommon

• shares outstanding

• Total Paid-In Capital

• shares at cost

• Retained Earnings

• shares issued

• Treasury StockCommon

6-Feb: declared 5% stock dividend. The market value of the stock on that date was $25 a share

15- Feb: Distributed the stock dividend

29- July: Purchased 2,000 shares treasury stock at $25 a share

27-Nov: Declared a cash dividend of .20 a share

Common stock- $10 PV; 200,000 shares authorized, 22,000 shares issued- credit balance 220,000

Paid-In capital- 360,000 credit balance

Retained Earnings- 163,000 credit balance