Pearson began 2012 with 30,000 $1 common shares issued and outstanding. Paid in capital in excess of par was $25,000 and retained earnings were $175,000. Net income for 2012 was $22,000. Pearson Wood Supplies completed the following transactions for 2012

Pearson began 2012 with 30,000 $1 common shares issued and outstanding. Paid in capital in excess of par was $25,000 and retained earnings were $175,000. Net income for 2012 was $22,000. Pearson Wood Supplies completed the following transactions for 2012.

Jan

Issued 10,000 shares $1 par common stock for $10 per share

Declared a cash dividend on 5,000 shares of 5% $4 par preferred stock and a $.20 per share dividend on 40,000 shares of common stock outstanding.

The date of record is January 15 and the date of payment is Jauary 20.

Paid the cash dividend

March

Declared a 2-for-1 stock split by calling in the 40,000 shares of $1 par common stock and issuing new stock in its place

April

Declared and distributed a 10% stock dividend on the common stock when the market value was $12 per share

June

Purchased 1,000 shares of common stock for the treasury for $13 per share

Dec

Sold 500 treasury shares for $15 per share

Pearson began 2012 with 30,000 $1 common shares issued and outstanding. Paid in capital in excess of par was $25,000 and retained earnings were $175,000. Net income for 2012 was $22,000. Pearson Wood Supplies completed the following transactions for 2012

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