P12-4B On January 1, 2008, Argentina Corporation had the following stockholders’ equity

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On January 1, 2008, Argentina Corporation had the following stockholders’ equity
accounts.

Common Stock ($20 par value, 75,000 shares issued and outstanding					1,500,000
Paid-in Capital in Excess of Par Value					200,000
Retained Earnings					600,000

During the year, the following transactions occurred.
Feb. 1 Declared a $1 cash dividend per share to stockholders of record on February 15,
payable March 1.
Mar. 1 Paid the dividend declared in February.
Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $36.
July 1 Declared a 10% stock dividend to stockholders of record on July 15, distributable July
31. On July 1, the market price of the stock was $13 per share.
31 Issued the shares for the stock dividend.
Dec. 1 Declared a $0.50 per share dividend to stockholders of record on December 15, payable
January 5, 2009.
31 Determined that net income for the year was $350,000.

Instructions
(a) Journalize the transactions and the closing entry for net income.
(b) Enter the beginning balances, and post the entries to the stockholders’ equity accounts.
(Note: Open additional stockholders’ equity accounts as needed.)
(c) Prepare a stockholders’ equity section at December 31.