Question - On January 1, 201, Giants Inc. had the following account balances in its stockholders' equity accounts:
Preferred stock, $100 par, 1000 shares outstanding $1,000,000
Paid-in capital in excess of par-preferred $100,000
Common stock, $1 par, $ 250,000 shares issued 250,000
Paid-in capital in excess of par-common $ 500,000
Retained earnings $ 2,000,000
Treasury stock, at cost, 5000 shares $ 25,000
During 2011 Giants Inc. had the following transactions:
January 15: Declared a property dividend of 100,000 shares of Jets Co. (book value $10 per share, market value $9 per share)
February 17: Distributed the property dividend.
April 10: A 2-for-1 stock split was declared on outstanding common stock and effected in the form of a stock dividend. The market value of the stock was $4 on this date.
July 18: Declared and distributed a 3% stock dividend on outstanding common stock. The market value per share was $5 on this date.
December 1: Declared a fifty cents per share cash dividend on the outstanding common shares.
December 20: Paid the cash dividend.
Required:
A. Record the above transactions and events in journal format
B. Prepare the stockholder's equity section of Giants Inc. balance sheet as of December 31, 2011. Assume net income is $500,000 for 2011.