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 | 2 | Issued 10,000 shares $1 par common stock for $10 per share | |||||||||||
| 6 | 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. | |||||||||||||
| 20 | Paid the cash dividend | ||||||||||||
| March | 15 | 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 | 10 | Declared and distributed a 10% stock dividend on the common stock when the market value was $12 per share | |||||||||||
| June | 14 | Purchased 1,000 shares of common stock for the treasury for $13 per share | |||||||||||
| Dec | 22 | Sold 500 treasury shares for $15 per share | |||||||||||
