dawls company reported stockholder s equity on dec 31 of the prior year as follows c 1560660

Dawls company reported stockholder’s equity on Dec 31 of the prior year as follows:

common stock $5 par value, 1000000

shares authorized, 500000 shares issued $2500000

Paid-in capital in excess of par common stock $1000000

Retained earnings 3000000

The following selected transactions ocurred during the current year:

Feb 15 – the board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share

March 9 – paid the stock dividend

May 1 – A cash of 0.30$ per share was decared by the board of directors to stockholders of record on May 20, payable June 1

June 1 – paid cash dividend

August 20 – the board decided to split the stock 4-for-1, effective on September 1

September 1- stock split 4for1

Dec 31 – Earned a net income of $800000 for the current year.

Prepare a net income of $800000 for the current year.