On January 1, 2014, Geffrey Corporation had the following stockholders’ equity accounts.
|
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.
|
1 |
Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1. |
|
|
1 |
Paid the dividend declared in February. |
|
|
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. |
|
|
1 |
Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2015. |
|
|
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.