(a) Journalize the transactions and the closing entries for net income and divid
ID: 2585111 • Letter: #
Question
(a) Journalize the transactions and the closing entries for net income and dividends. (b) Using T-Accounts; Enter the beginning balances, and post the entries, from (a) above, to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.) (c) Prepare a partial Balance Sheet of just the Stockholders' Equity section at December 31,2017. On January 1, 2017, Diaz Corporation had the following stockholders' equity accounts Common Stock ($10 par value, 50,000 shares issued and outstanding) $500,000 Paid-in Capital in Excess of Par-Common Stock Retained Earnings 100,000 240,000 Declared a SI cash dividend per share to stockholders of record on January 31, payable February 15. Paid the dividend declared in January Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $14 Jan. 15 Feb. 15 Apr. 15 share per Issued the shares for the stock dividend. Announced a 2-for-1 stock split. The market price per share prior to the announcement was $15. (The new par value is $5.) Declared a $0.60 per share cash dividend to stockholders of record on December 15, payable January 10, 2018. May July 15 1 Dec. 1 31 Determined that net income for the year was $250,000Explanation / Answer
Jounal:
Ledger:
Date Account Debit Credit Jan.15 Retained earnings 50000 To Dividend payable 50000 [Dividend delcared] Feb.15 Dividend payable 50000 To Bank 50000 [Dividend paid] Apr.15 Retained earnigs 70000 To Stock dividend payable 70000 [stock dividend declared= 50000*10%*14] May.15 Stock dividend payable 70000 To common stock 50000 To additional paid in capital 20000 [ Stock dividend distributed] Jul.1 Common stock 550000 To common stock 550000 [Stock split] Dec.1 Retained earnings 33000 To Dividend payable 33000 [Dividend delcared= 55000*0.6] Dec.31 Profit and loss A/c 250000 To retained earnings 250000 [net income transferred to retained earnings]Related Questions
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