Question
On January 1, 2019, Wildhorse Co. had the following stockholders' equity accounts. Common Stock ($10 par value, 79,300 shares issued and outstanding) $793,000 Paid-in Capital
On January 1, 2019, Wildhorse Co. had the following stockholders' equity accounts.
Common Stock ($10 par value, 79,300 shares issued and outstanding) $793,000 Paid-in Capital in Excess of Par Value-Common Stock 210,000 Retained Earnings 551,000
During the year, the following transactions occurred.
Jan. 15 Declared a $1.10 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 5% 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. May 15 Issued the shares for the stock dividend. July 1 Announced a 2-for-1 stock split. The market price per share prior to the announcement was $14. (The new par value is $5.) Dec. 1 Declared a $0.80 per share cash dividend to stockholders of record on December 15, payable January 10, 2020. Dec. 31 Determined that net income for the year was $215,000.
Journalize the transactions and the closing entries for net income and dividends. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.
Please show work.
Date Account Titles and Explanation Debit Credit > (To close stock dividends) (To close net income)Step by Step Solution
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