At the beginning of 2021, Saban Corporation’s stockholders’ equity consisted of the following: Common stock, $30...

At the beginning of 2021, Saban Corporation’s stockholders’ equity consisted of the following: Common stock, $30 par value, 50,000 shares authorized, 23,000 shares issued............................................................. $690,000 Paid-In capital in excess of par value common stock.................... 140,000 Retained earnings........................................................................ 130,000 Total stockholders’ equity....................................................... $960,000 1. During the year, the company completed these transactions: June 6 Purchased 2,500 shares of treasury stock at $41 per share. 23 The directors voted a $0.55 per share cash dividend payable on July 25 to the July 20 stockholders of record. July 25 Paid the dividend declared on June 23. Aug. 10 Sold 1,250 of the treasury shares at $45 per share. Oct. 20 Sold 1,250 of the treasury shares at $38 per share. Dec. 15 The directors voted a $0.60 per share cash dividend payable on January 20 to the January 15 stockholders of record, and they voted a 2% stock dividend distributable on January 30 to the January 20 stockholders of record. The market value of the stock was $40 per share. 31 Closed the Income Summary account and carried the company’s $55,000 net income to Retained Earnings. A. Prepare a retained earnings statement for the year and the stockholders’ equity section of the company’s year-end balance sheet.

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