The equity sections for Stream Launch Group at the beginning of the year (January 1) and end of the year (December 31) follow.

Stockholders Equity (January 1)
Common stock$10 par value, 130,000 shares authorized, 50,000 shares issued and outstanding	$	500,000
Paid-in capital in excess of par value, common stock		75,000
Retained earnings		410,000
Total stockholders equity	$	985,000

Stockholders Equity (December 31)
Common stock$10 par value, 130,000 shares authorized, 56,370 shares issued, 4,500 shares in treasury	$	563,700
Paid-in capital in excess of par value, common stock		151,440
Retained earnings ($90,000 restricted by treasury stock)		740,000
		1,455,140
Less cost of treasury stock		(90,000	)
Total stockholders equity	$	1,365,140

The following transactions and events affected its equity during the year.

Jan.		5		Declared a $0.80 per share cash dividend, payable on January 10.
Mar.		20		Purchased treasury stock for cash.
Apr.		5		Declared a $0.80 per share cash dividend, payable on April 10.
July		5		Declared a $0.80 per share cash dividend, payable on July 10.
July		31		Declared a 14% stock dividend when the stocks market value was $22 per share.
Aug.		14		Issued the stock dividend that was declared on July 31.
Oct.		5		Declared a $0.80 per share cash dividend, date of record October 10.

1. Prepare a Trial Balance

Stream Launch Group
Trial Balance
December 31, 2019
Account Title	Debit	Credit
Cash	1,609,436
Common stock		500,000
Paid-in capital, Common		75,000
Retained earnings		410,000
Income summary		624,436
Total	1,609,436	1,609,436

2. Prepare Cash Dividends

Calculation of Cash Dividends
	January 05	April 05	July 05	October 05
How many common shares are outstanding?
Dividend per share
Total cash dividend

3. Prepare a Stock Dividend

Capitalization of retained earnings due to stock dividend:
Number of shares outstanding on July 30
Percentage of stock dividend
Number of shares to be issued
Amount to be capitalized per share
Total amount to be capitalized