Question
On January 1, 2020, Bramble Corp. had the following stockholders equity accounts. Common Stock ($26 par value, 50,000 shares issued and outstanding) $1,300,000 Paid-in Capital
On January 1, 2020, Bramble Corp. had the following stockholders equity accounts.
| Common Stock ($26 par value, 50,000 shares issued and outstanding) | $1,300,000 | |
| Paid-in Capital in Excess of ParCommon Stock | 194,000 | |
| Retained Earnings | 619,000 |
During the year, the following transactions occurred.
| Feb. 1 | Declared a $2 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 $15 per share. | |
| 31 | Issued the shares for the stock dividend. | |
| Dec. 1 | Declared a $0.40 per share dividend to stockholders of record on December 15, payable January 5, 2021. | |
| 31 | Determined that net income for the year was $393,500.
(b) 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.) |
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Auditing A Quickstudy Reference Tool
Authors: Michael P Griffin
1st Edition
1423236408, 978-1423236405
