The Following Selected Transactions Took Place During the Current Year

Essay

The following selected transactions took place during the current year for a company:
$\begin{array}{|l|l|}\hline \text { March 25 } & \begin{array}{l}\text { Declared a \$2 per share cash dividend on 20,000 shares of common Stock } \\\text { outstanding. }\end{array} \\\hline \text { April 20 } & \text { Paid the cash dividends declared on March 25. } \\\hline \text { Dec. 31 } & \begin{array}{l}\text { Closed the \$52,000 credit balance in Income Summary that reflects net } \\\text { incometo Retained Earnings. }\end{array} \\\hline\end{array}$
(a)Prepare the journal entries for these transactions.
(b)If Retained Earnings had a $75,000 credit balance on January 1,calculate its year-end balance as of December 31.