P12-4A On January 1, 2006, Galactica Corporation had the following stockholders' equity accounts

P12-4A Prepare dividend entries and stockholders' equity section.

P12-4A  Galactica Corporation

P12-4A  On January 1, 2006, Galactica Corporation had the following stockholders' equity accounts.

Common Stock ($20 par value, 60,000 shares issued and outstanding)	$1,200,000
Paid-in Capital in Excess of Par Value	200,000
Retained Earnings	500,000

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
Apr.    1	Announced a 5-for-1 stock split. Prior to the split, the market price per share was $35.
July    1	Declared a 5% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $7 per share.
July 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, 2007.
31	Determined that net income for the year was $380,000.

Instructions

Journalize the transactions and closing entries.

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