The balance sheet of Heitman Management Consulting, Inc. at December 31, 2015, reported the following stockholders' equity: During 2016, Heitman completed the following selectedtransactions:
Stockholders' Equity
Paid-In Capital:
Common Stock—$12 Par Value; 250,000 shares
authorized, 30,000 shares issued and outstanding
$360,000
Paid-In Capital in Excess of Par—Common
380,000
Total Paid-In Capital
740,000
Retained Earnings
159,000
Total Stockholders' Equity
$899,000
Feb.
6
Declared a 5% stock dividend on common stock. The market value of Heitman's stock was $21 per share.
15
Distributed the stock dividend.
Jul.
29
Purchased 2,000 shares of treasury stock at $21per share.
Nov.
27
Declared a $0.20 per share cash dividend on the common stock outstanding.
Requirements
1. Record the transactions in the general journal.
2. Prepare a retained earnings statement for the year ended December 31, 2016. Assume Heitman's net income for the year was $85,000.
3. Prepare thestockholders' equity section of the balance sheet at December31, 2016.

Heitman Management Consulting, Inc.

1. General Journal

Feb. 6:

Debit Stock Dividend $18,000

Credit Stock Dividend Payable $18,000

To record the declaration of 5% stock dividend on 30,000 shares.

Feb. 15:

Debit Stock Dividend Payable $18,000

Credit Common Stock $18,000

To record the distribution of 1,500 shares of common stock dividend.

Jul. 29:

Debit Treasury Stock $24,000

Debit Paid-In Capital in Excess of Par—Common $18,000

Credit Cash Account $42,000

To record the purchase of 2,000 shares of treasury stock at $21 per share.

Nov. 27:

Debit Dividend $5,900

Credit Dividends Payable $5,900

To record the declaration of $0.20 per share cash dividend on 29,500 shares.

2. Retained Earnings Statement for the year ended December 31, 2016:

December 31, 2015 balance  $159,000

Net Income for the year          $85,000

Dividends: Stock                       (18,000)

Dividends: Cash                         (5,900)

December 31, 2016 balance $220,100

3. Stockholders' equity section of the balance sheet at December31, 2016:

Stockholders' Equity:

Paid-In Capital:

Common Stock—$12 Par Value:

250,000 shares  authorized,

31,500 shares issued and outstanding        $378,000

Paid-In Capital in Excess of Par—Common   362,000

2,000 shares of Treasury Stock                    (24,000)

Total Paid-In Capital                                         716,000

Retained Earnings                                           220,100

Total Stockholders' Equity                            $936,100

Explanation:

a) Data and Calculations:

Balance sheet of Heitman Management Consulting, Inc. at December 31, 2015

Stockholders' Equity:

Paid-In Capital:

Common Stock—$12 Par Value:

250,000 shares  authorized,

30,000 shares issued and outstanding      $360,000

Paid-In Capital in Excess of Par—Common   380,000

Total Paid-In Capital                                        740,000

Retained Earnings                                           159,000

Total Stockholders' Equity                           $899,000

Heitman's net income for the year = $85,000

b) Issued and Outstanding Common Stock Shares:

December 31, 2015 = 30,000          $360,000

Stock Dividend              1,500             $18,000

December 31, 2016    31,500           $378,000

c) Treasury Stock            2,000             $24,000

Outstanding shares 29,500

d) Paid-in In Excess of Capital:

December 31, 2015          $380,000

Treasury Stock                     (18,000)

December 31, 2016         $362,000

so they can see what that city is producing and to also see if they can some how get that product. like gold in africa.