Chapter 11

On January 1, 2022, Sheffield Corp. had the following stockholders' equity accounts. $975,600 Common Stock ($ 12 par value, 81,300 shares issued and outstanding) Paid-in Capital in Excess of Par-Common Stock Retained Earnings 188,000 503,000 During the year, the following transactions occurred. Jan. 15 Feb. 15 Apr. 15 May 15 Declared a $ 1 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 $ 16 per share. Issued the shares for the stock dividend. Announced a 2-for-1 stock split. The market price per share prior to the announcement was $ 14. (The new par value is $6.) Declared a $0.70 per share cash dividend to stockholders of record on December 15, payable January 10, 2023. Determined that net income for the year was $ 220,000. July 1 Dec. 1 Dec. 31 15 V Cash Dividends 81300 Dividends Payable 15 V Dividends Payable 81300 Cash 15 Stock Dividends 130080 Pald-in Capital incess of Par-Common Stock Common Stock Dividends Distributable y15 Common Stock Dividends Distributable 8130 Common Stock vi No Entry No Entry 1 Cash Dividends 75121 Dividends Payable ec 31 Retained Earnings 220000 Cash Dividends (To close cash dividends) ec 31 Retained Earnings 130080 Stock Dividends (To close stock dividends) 31 Income Summary 156421 Retained Earnings 1564