On January 1, 2011, Galactica Corporation had the following stockholders' equity accounts.? - 26793

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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 February. 
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, 2012. 
Dec. 31 Determined that net income for the year was $380,000.

Solution Description

Feb. 1 Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1. 
Dr Retained earnings $60,000 (60,000 shares x $1) 
Cr Dividend payable $60,000 

Mar. 1 Paid the dividend declared in February.