hello. parts (b) and (c), i can do on my own, so they can be ignored. I need help with (a), (c), and (e). Thank you for your help. QUESTION #3 Instructions: (a) Journalize the transactions shown below. (b) Post to T-accounts shown below. (c) Prepare the closing entries for net income and dividends. (d) Post closing entries to T-accounts. (e) Prepare the equity section for Prasad Spa at December 31, 2017.
COMPANY INFO: On January 1, 2017, Prasad SpA had the following equity accounts. Share Capital-Ordinary (25 par value, 48,000 shares issued and outstanding) .. 1,200,000 Share Premium-Ordinary .. 200,000 Retained Earnings .. 600,000 During the year, the following transactions occurred Feb. 1 Declared a 1 cash dividend per share to shareholders of record on February 15, payable March 1. Mar. 2 Paid the dividend declared in February. Apr. 1 Announced a 5-for-1 share split. Prior to the split, the market price per share was 36. Jul. 1 Declared a 10% share dividend to shareholders of record on July 15, distributable July 31. On July 31, the market price was 7 per share. Jul. 31 Issued the shares for the share dividend. Dec. 1 Declared a 0.40/share dividend to shareholders of record on December 15, payable Jan. 5, 2018.
GENERAL JOURNAL
(a)
Feb	Account Title	Debit	Credit
Mar	Account Title	Debit	Credit
Apr	Account Title	Debit	Credit
1	Answer: Memofive-for-one share split increases number of shares to 240,000 = (48,000 X 5) and reduces par value to 5 per share.	--	--
Jul	Account Title	Debit	Credit
Jul	Account Title	Debit	Credit
Dec	Account Title	Debit	Credit

Instructions: (b) Post above journal entries to the following T-accounts:

select T-Accounts

CASH

SHARE CAPITAL--ORDINARY

SHARE PREMIUM--ORDINARY

CASH DIVIDENDS

Bal. 1,200,000

Bal. 200,000

ORDINARY SHARE DIVIDENDS DISTRIBUTABLE

DIVIDENDS PAYABLE

RETAINED EARNINGS

SHARE DIVIDENDS

Bal. 600,000

(c) Prepare the closing entries for net income and dividends.
Instructions: Dec. 31 Performed entry to close net income of 350,000 to retained earnings. Dec. 31 Performed entry to close cash dividends to retained earnings. Dec. 31 Performed entry to close share dividends to retained earnings.
GENERAL JOURNAL
Dec	Account Title	Debit	Credit
Dec	Account Title	Debit	Credit
Dec	Account Title	Debit	Credit

(d) Post closing entries to T-accounts found above.

(e)

Instructions: Prepare the equity section of the statement of financial position for Prasad Spa at December 31, 2017.

Your response: PRASAD SpA

Partial Statement of Financial Position

December 31, 2017

Equity

Share CapitalOrdinary, 5 par,

264,000 shares issued and outstanding.

Share PremiumOrdinary

Retained Earnings ..

Total equity