On January 1, 2019, Primo Corporation had the following stockholders' equity accounts. Common Stock ($10 par value,

Question:

On January 1, 2019, Primo Corporation had the following stockholders' equity accounts.

Common Stock ($10 par value, 75,000 shares issued and outstanding)...........$750,000

Paid-in Ca p ital in Excess of Par-Common Stock...................................200,000

Retained Earnings...........................................................................540,000

During the year, the following transactions occurred.

Jan. 15 Declared a $1 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 $14 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 $15. (The new par value is $5.)

Dec. 1 Declared a $0.60 per share cash dividend to stockholders of record on

December 15, payable January 10, 2020.

31 Determined that net income for the year was $250,000.

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.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...