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Retained Earnings Accounts and Statement On January 1, 20--, Glover Company's retained earnings accounts had the following balances: Appropriated for land acquisition $ 60,000 Unappropriated retained earnings 900,000 $ 960,000 During the year ended December 31, 20--, Glover completed the following selected transactions: Mar. 20 Declared a semiannual dividend of $0.80 per share on preferred stock and $0.25 per share on common stock to shareholders of record on April 10, payable on April 15. Currently, 10,000 shares of $50 par preferred stock and 100,000 shares of $5 par common stock are outstanding. Apr. 15 Paid the cash dividends. Oct. 10 Declared semiannual dividend of $0.80 per share on preferred stock and $0.25 per share on common stock to shareholders of record on November 5, payable on November 10. Nov. 10 Paid the cash dividends. 17 Declared a 5% stock dividend to shareholders of record on December 8, distributable on December 15. Market value of the common stock was estimated at $18 per share. Dec. 15 Issued certificates for common stock dividend. 31 Net income for 20-- was $290,000. Closed the income summary account. 31 Closed the cash dividends and stock dividends accounts. Nov. 17 Stock Dividends o Stock Dividends Distributable 0 25,000 Paid-In Capital in Excess of Par-Common Stock Dec. 15 Stock Dividends Distributable 25, 0000 0 25,000 Common Stock Dec. 31 Income Summary 290, 0000 Retained Earnings 290,000 Dec. 31 Retained Earnings Cash Dividends Stock Dividends o Glover Company Statement of Retained Earnings For Year Ended December 31, 20-- Appropriated: Appropriated for land acquisition 60,000 Unappropriated: Balance, January 1 900,000 Add: Net income for year 290,000 ,190,000 Less: Cash dividends Less: Stock dividends Retained earnings unappropriated, December 31 1,034,000 Total retained earnings, December 31 1,094,000

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