On December 31, 2020, Sandhill Corporation had the following shareholders' equity accounts: SANDHILL CORPORATION Balance Sheet(partial) December 31, 2020 Shareholders' equity Common shares (unlimited number of shares authorized, 95,000 issued) Retained earnings Total shareholders' equity $1.042.000 520,000 $1,562,000 Jan 15 1 During the year, the following transactions occurred: Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15, July Announced a 2-for-1 stock spilt. The market price per share on the date of the announcement was $18. Declared a 15% stock dividend to shareholders of record on December 30, distributable on January 15. On December 15, the market price of each share was $9; on December 30, 512: and on January 15, 11 Determined that profit before income tax for the year was $451.000. The company has a 25% income tax rate Dec 15 31 Journalize the transactions and closing entries for 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. I no entry is required, select "No Entry for the account tidles and enter for the amounts. Record journal entries in the order presented in the problem.) Debit Date Account Titles and Explanation Cash Dividends-Common 950 Jan 15 Dividends Payable (To record declaration of cash dividend) 950 Feb 15 Dividends Payable Cash No Entry Date Account Titles and Explanation Debit 950 Jan 15 Cash Dividends-Common Dividends Payable (To record declaration of cash dividend) Feb 15 Dividends Payable 950 Cash July 1 > No Entry No Entry (To record payment of dividend) July 1 Meme: 2-for-1 stock split increases the number of shares to 190000 Dec 15 v 2565 Stocks Dividends Stock Dividends Distributabie (To record declaration of stock dividend.) Dec 31 Income Summary 3382 Retained Earning Dec 31 Retained Earning 2565 Stock Dividends (To close Income Summary) Dec 31 (To close dividends to retained earnings) Enter the beginning balances from the December 31, 2020, partial balance sheet Post the entries in part () to the shareholders' equity accounts. (Note:Open additional shareholders equity accounts as needed Common Shares Credit Balance Debit Date Explanation Ref. Jan. 1 Balance Stock Dividends Distributable Balance Date Explanation Ref. Debit Credit Dec. 15 J1 Cash Dividends-Common Debit Credit Balance Date Explanation Ref. Jan 15 11 Dec 31 Closing entry J1 Stock Dividends Debit Date Explanation Ref. Credit Balance Dec 15 31 Dec 31 Closing entry 11 Retained Earnings Date Explanation Ref. Debit Credit Balance Jan 1 Balance Dec 31 Closing entry J1 Dec 31 Closing entry 31 Prepare the shareholders' equity section of the balance sheet at December 31, 2021 SANDHILL CORPORATION Partial Balance Sheet $ $ $
