Dawls company reported stockholder's equity on Dec 31 of the prior year as follows:
common stock $5 par value, 1000000
shares authorized, 500000 shares issued $2500000
Paid-in capital in excess of par common stock $1000000
Retained earnings 3000000
The following selected transactions ocurred during the current year:
- Feb 15 - the board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share
- March 9 - paid the stock dividend
- May 1 - A cash of 0.30$ per share was decared by the board of directors to stockholders of record on May 20, payable June 1
- June 1 - paid cash dividend
- August 20 - the board decided to split the stock 4-for-1, effective on September 1
- September 1- stock split 4for1
- Dec 31 - Earned a net income of $800000 for the current year.
Prepare a net income of $800000 for the current year.