The shareholders’ equity section of Gilman Company’s balance sheet appeared as follows on August 15, 2010: 

Common stock—$ 1 par value, 1,000,000 shares authorized, 

 400,000 shares issued and outstanding ………………….. $ 400,000

 Paid- in capital in excess of par ……………………………..…... 500,000 

Total contributed capital ……………………………………......…$ 900,000 

Retained earnings …………………………………….........…………. 606,000 

Total shareholders’ equity ………………………………...….. $ 1,506,000 

1. On August 15, 2010, the board of directors declared a 5 percent stock dividend. The date of distribution was September 25, 2010, to the shareholders of record on September 1, 2010. The stock was selling for $ 10 per share on the date of declaration. 

2. On November 30, 2010, Gilman Company repurchased and held as treasury stock 1,000 shares of its common stock at $ 11 per share. 3. Gilman generated $ 100,000 of net income in 2010. 

Required: 

A. Make the entries to record these equity events. 

B. Prepare the shareholders’ equity section of the balance sheet at December 31, 2010.