Treasury stock, common, 3,900 shares
The following transactions and events happened in 2013, in chronological order:
a. A cash dividend of $67,000 was declared and paid. No dividends had been paid in 2012.
b. 3,400 Treasury shares were bought for $75,800.
c. 1,950 Preferred shares were purchased and retired for $131 per share.
d. A common stock dividend of 10% was issued. Treasury shares were considered ineligible for the stock dividend, by order of the Board of Directors. The dividend was valued at $43 per share.
e. Earnings for the year were $1,740,000.
1. Prepare the journal entries for the above transactions.
2. Calculate what the balance is in the Retained Earnings account after the above transactions have been recorded.