SHOW WORK PLEASE! B. Enter the beginning balances, and post the entries to the s
ID: 2599409 • Letter: S
Question
SHOW WORK PLEASE!
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. (Check Figure: Total Stockholder's Equity $1,566,000)
On January 1, 2015, Primo Corporation had the following stockholders' equity accounts. Common Stock ($10 par value, 82,600 shares issued and outstanding) $826,000 Paid-in Capital in Excess of Par Value-Common Stock Retained Earnings 215,300 563,600 During the year, the following transactions occurred Jan. 15 Declared a $1.20 cash dividend per share to stockholders of record on January 31, payable February 15 Feb. 15 Paid the dividend declared in January Apr. 15 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 $15 per share May 15 Issued the shares for the stock dividend July 1 Announced a 2-for-1 stock split. The market price per share prior to the announcement was $13. (The new par value is $5.) Dec. 1 Declared a $0.50 per share cash dividend to stockholders of record on December 15, payable January 10, 2016 Dec. 31 Determined that net income for the year was $229,700 (a) Your answer is partially correct. Try again Journalize the transactions and the closing entries for net income and dividends. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)Explanation / Answer
a)
Jan 15:
No entry for declaration of dividend.
Feb 15:
Dividend Dr 99120 (82600*1.20)
Cash Cr 99120
Apr 15:
No entry for declaration of stock dividend.
May 15:
Retained Earnings Dr 123900 (82600*10%*15)
Common stock Cr 82600 (8260*10)
Paid in capital in excess of par value Cr 41300 (8260*5)
July 1:
Common stock(Par value $10) Dr 908600 (826000+82600)
Common stock(Par value $5) Cr 908600
Dec 1:
No entry for declaration of dividend.
Closing entries:
Income summary Dr 229700
Retained Earnings Cr 229700
Retained Earnings Dr 99120
Dividend Cr 99120
Part B:
Stockholders’ Account
Date
Particulars
Amount
Date
Particulars
Amount
Dec 31
Balance c/d
1735480
Jan 1
Common stock
826000
Jan 1
Paid in excess of capital
215300
May 15
Common stock
82600
May 15
Paid in excess of capital
41300
Dec 31
Retained Earnings
570280
TOTAL
1735480
TOTAL
1735480
Retained Earnings Account
Date
Particulars
Amount
Date
Particulars
Amount
May 15
Common stock
82600
Jan 1
Balance b/d
563600
May 15
Paid in excess of capital
41300
Dec 31
Income summary
229700
Dec 31
Dividend
99120
Dec 31
Balance c/d
570280
793300
793300
Part C:
Stockholders’ equity section
Beginning Common stock
826000
Beginning Paid in excess of capital
215300
Add: Common stock issued
82600
Paid in excess of capital
41300
Add: Retained Earnings
570280
Total
1735480
Date
Particulars
Amount
Date
Particulars
Amount
Dec 31
Balance c/d
1735480
Jan 1
Common stock
826000
Jan 1
Paid in excess of capital
215300
May 15
Common stock
82600
May 15
Paid in excess of capital
41300
Dec 31
Retained Earnings
570280
TOTAL
1735480
TOTAL
1735480
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.