Pearson Wood Supplies shares and earnings for 2012. 

Pearson Wood Supplies began 2012 with 30,000 $1 common shares issued and outstanding, with paid-in capital in excess of par of $25,000 and retained earnings of $175,000. The net income for 2012 was $22,000.

In January, Pearson issued 10,000 shares of $1 par common stock for $10 per share. On January 6, the company declared a cash dividend of 5% on 5,000 shares of $4 par preferred stock and a $0.20 per share dividend on 40,000 shares of common stock outstanding. The date of record was January 15 and the date of payment was January 20.

In March, the company declared a 2-for-1 stock split by calling in the 40,000 shares of $1 par common stock and issuing new stock in its place. In April, Pearson declared and distributed a 10% stock dividend on the common stock when the market value was $12 per share.

In June, the company purchased 1,000 shares of common stock for the treasury for $13 per share. And in December, Pearson sold 500 treasury shares for $15 per share.

It is important to note that these transactions will impact the company’s balance sheet, income statement and retained earnings statement. In order to accurately reflect the changes in financial position and performance, you’ll need to adjust the financial statements accordingly.