Question
b) On January 1, 2017, Baharul Corporation had the following stockholders' equity accounts. Common Stock ($ 10 par value, 60,000 shares issued and $ 6,00,000
b) On January 1, 2017, Baharul Corporation had the following stockholders' equity
accounts.
Common Stock ($ 10 par value, 60,000 shares issued and $ 6,00,000
outstanding)
Paid-in Capital in Excess of Par-Common Stock
2,00,000
Retained Earnings
7,00,000
During the year, the following transactions occurred.
Jan. 1 Declared a $ 1.80 cash dividend per share to stockholders of record on
January 15, payable
March 1.
Mar. 1 Paid the dividend declared in January.
Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per
share was $ 17.
Aug. 1 Declared a 10% stock dividend to stockholders of record on July 15,
distributable Aug. 31. On
Aug. 1, the market price of the stock was $ 6 per share.
Aug. 31 Issued the shares for the stock dividend.
Dec. 1 Declared a $ 0.60 per share dividend to stockholders of record on
December 15,
payable January 5, 2018.
31 Determined that net income for the year was $ 1,25,000.
Required:
Journalize the transactions and the closing entry for net income.
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