FILL IN THE BALANCE SHEET AT THE BOTTOM
On January 1, 2022, Larkspur, Inc. had the following stockholders' equity accounts. Common Stock ($20 par value, 59,300 shares issued and outstanding) $1,186,000 Paid-in Capital in Excess of Par-Common Stock 204,000 Retained Earnings 621,000 During the year, the following transactions occurred. Feb. 1 Declared a $3 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $39. July 1 Declared a 10% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $15 per share. 31 Issued the shares for the stock dividend. Dec. 1 Declared a $0.30 per share dividend to stockholders of record on December 15, payable January 5, 2023. 31 Determined that net income for the year was $355,000.Journalize the transactions and the closing entries for net income and dividends. (Credit account titles are automatically indented when amount is entered. Do not indent manually. lf no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) ate Account Titles and Explanation Debit Credit . 1 V Cash Dividends 177900 Dividends Payable 177900 '. 1 V Dividends Payable 177900 Cash 177900 .1 V I NoEntry I n I No Entry 0 '1 V I Stock Dividends I 177900 I Common Stock Dividends Distributable 118600 I Paid-in Capital in Excess of Par-Common Stock I I 59300 '31 V 41 31 Common Stock Dividends Distributable Common Stock Cash Dividends Dividends Payable Income Summary Retained Earnings (To close net income) _31 V .31 V Retained Earnings Stock Dividends (To close stock dividends) Retained Earnings Cash Dividends (To close cash dividends) 118600 118600 39138 39138 355000 355000 177900 177900 217038 217038 (b) V Your answer is correct. Enter the beginning balances, and post the entries to the stockholders' equity accounts. (Use T-accounts.) (Note: Open additional stockholders' equity accounts as needed.) (Post entries in the order of journal entries presented in the previous part. Select the date for closing balances even in case of zero balance.) Common Stock Jan. 1 Bal. 1186000 July 31 118600 Dec. 31 Bal. 1304600 Retained Earnings Dec. 31 177900 Jan. 1 Bal. 621000 Dec. 31 217038 Dec. 31 355000 Dec. 31 Bal. 581062\fPrepare a stockholders' equity section at December 31. (Enter account name only and do not provide descriptive information.) Larkspur, Inc. Balance Sheet (Partial)
