On January 1, 2014, Craig Corp. had the following stockholders' equity accounts:
Common Stock, $20 par value, 60,000 shares issues and outstanding $1,200,000
Additional Paid-In Capital- Common Stock 200,000
Retained Earnings 600,000
During 2014, the following transactions occurred:
Feb. 1 Declared a $1.00 per share cash dividend to stockholders of record on February 15, payable on March 1.
Mar.1 Paid the dividend declared in February.
Apr. 1 Issued 10,000 shares on common stock at the market price of $28 per share.
May 1 Issued a 2-for-1 stock split on the common shares. Prior to the split, the market price of the stock was $30.
Jul. 1 Declared a 10% stock dividend to stockholders of record on July 15, distributable on July 31. On July 1, the market price of the stock was $14 per share.
Jul. 31 Issued the shares for the stock dividend.
Nov. 1 Purchased 5,000 shares of treasury stock at $12 per share.
Dec. 1 Reissued 3,000 of the treasury shares at $13 per share.
Dec. 31 Determined that the net income for the year was $350,000.
REQUIRED:
a) Prepare the journal entries, and closing entries, necessary for the 2014 transactions.
b) Prepare the stockholders' equity section on the December 31, 2104 balance sheet.