On January 1, 2017, Geffrey Corporation had the following stockholders equity accounts.

Ordinary shares ($20 par value, 60,000 shares issued and outstanding) $1,200,000

Share primum ordinary shares 200,000

Retained Earnings 600,000

During the year, the following transactions occurred:

• Feb. 1 Declared a $1 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 $36.

• 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 $13 per share.

• 31 Issued the shares for the stock dividend.

• Dec. 1 Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2018.

• 31 Determined that net income for the year was $350,000.

Instructions:

(a) Journalize the transactions and the closing entries for net income and dividends.

(b) Enter the beginning balances and post the entries to the stockholders equity accounts.

(Note: Open additional stockholders equity accounts as needed.)

(c) Prepare a stockholders equity section on December 31.