On January 1, 2020, Geffrey Corporation had the following stockholders’ equity accounts. Prepare dividend entries and stockholders’ equity section. Common Stock ($20 par value, 60,000 shares issued and outstanding) $1,200,000 Paid-in Capital in Excess of Par—Common Stock 200,000 Retained Earnings 600,000 During the year, the following transactions occurred. Feb. 1 Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $36. July 1 Declared a 10% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $13 per share. 31 Issued the shares for the stock dividend. Dec. 1 Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2021. 31 Determined that net income for the year was $350,000. Instructions a. Journalize the transactions and the closing entries for net income and dividends. b. Enter the beginning balances, and post the entries to the stockholders’ equity accounts. (Note: Open additional stockholders’ equity accounts as needed.) c. Prepare a stockholders’ equity section at December 31.
On January 1, 2020, Geffrey Corporation had the following stockholders’ equity accounts. Prepare dividend entries and stockholders’ equity section. Common Stock ($20 par value, 60,000 shares issued and outstanding) $1,200,000 Paid-in Capital in Excess of Par—Common Stock 200,000 Retained Earnings 600,000 During the year, the following transactions occurred. Feb. 1 Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $36. July 1 Declared a 10% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $13 per share. 31 Issued the shares for the stock dividend. Dec. 1 Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2021. 31 Determined that net income for the year was $350,000. Instructions a. Journalize the transactions and the closing entries for net income and dividends. b. Enter the beginning balances, and post the entries to the stockholders’ equity accounts. (Note: Open additional stockholders’ equity accounts as needed.) c. Prepare a stockholders’ equity section at December 31.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 1MC: Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter...
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Question
On January 1, 2020, Geffrey Corporation had the following
Prepare dividend entries and stockholders’ equity section.
Common Stock ($20 par value, 60,000 shares issued and outstanding) | $1,200,000 |
Paid-in Capital in Excess of Par—Common Stock | 200,000 |
Retained Earnings | 600,000 |
During the year, the following transactions occurred.
Feb. | 1 | Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1. |
Mar. | 1 | Paid the dividend declared in February. |
Apr. | 1 | Announced a 2-for-1 stock split. Prior to the split, the market price per share was $36. |
July | 1 | Declared a 10% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $13 per share. |
31 | Issued the shares for the stock dividend. | |
Dec. | 1 | Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2021. |
31 | Determined that net income for the year was $350,000. |
Instructions
- a. Journalize the transactions and the closing entries for net income and dividends.
- b. Enter the beginning balances, and
post the entries to the stockholders’ equity accounts. (Note: Open additional stockholders’ equity accounts as needed.) - c. Prepare a stockholders’ equity section at December 31.
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