On January 1, 2014, Penton Corporation Had $2,000,000 of $10

Essay

On January 1, 2014, Penton Corporation had $2,000,000 of $10 par value ordinary shares outstanding that was issued at par and retained earnings of $1,000,000. The company issued 200,000 ordinary shares at $13 per share on July 1. On December 15, the board of directors declared a 10% share dividend to shareholders of record on December 31, 2014, payable on January 15, 2015. The market value of Penton Corporation shares was $15 per share on December 15 and $16 per share on December 31. Net income for 2014 was $500,000.
Instructions
(1) Journalize the issuance of shares on July 1 and the declaration of the share dividend on December 15.
(2) Prepare the equity section of the statement of financial position for Penton Corporation at December 31, 2014.