Problem 11 4A On January 1, 2019, Marigold Corp had the following stockholders equity accounts Common Stock ($20 par value, 62,000 shares issued and outstanding) $1,240,000 Paid in Capital in Excess of ParCommon Stock 191,000 Retained Earnings 636,000 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 $35 July 1 Declared a 15 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 50 per share dividend to stockholders of record on December 15, payable January 5, 2020 31 Determined that net income for the year was $386,000 Date Account Titles and Explanation Debit Credit Feb 1 Cash Dividends 124000 Dividends Payable 124000 Mar 1 Dividends Payable 124000 Cash 124000 Apr 1 No Entry 0 No Entry 0 July 1 Stock Dividends 279000 Common Stock Dividends Distributable 186000 X Paid in Capital in Excess of Par Common Stock 93000 July 31 Common Stock Dividends Distributable 186000 Common Stock 186000 Dec 1 7 Cash Dividends 71300 Dividends Payable 71300 Dec 31 v Income Summary 386000 (To close net income) Dec 31 v Retained Earnings 279000 Stock Dividends 279000 (To close stock dividends) Dec 31 v Retained Earnings II Cash Dividends (To close cash dividends)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 04, 2024

Problem 11-4A On January 1, 2019, Marigold Corp. had the following stockholders equity accounts. Common Stock ($20 par value, 62,000 shares issued and outstanding) $1,240,000

Problem 11-4A

On January 1, 2019, Marigold Corp. had the following stockholders equity accounts.

Common Stock ($20 par value, 62,000 shares issued and outstanding)		$1,240,000
Paid-in Capital in Excess of ParCommon Stock		191,000
Retained Earnings		636,000

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 $35.
July 1		Declared a 15% 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 $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2020.
31		Determined that net income for the year was $386,000.

Date Account Titles and Explanation Debit Credit Feb. 1 Cash Dividends 124000 Dividends Payable 124000 Mar. 1 Dividends Payable 124000 > Cash 124000 Apr. 1 No Entry 0 No Entry 0 July 1 Stock Dividends 279000 Common Stock Dividends Distributable 186000 X Paid-in Capital in Excess of Par-Common Stock 93000 July 31 Common Stock Dividends Distributable 186000 Common Stock 186000 Dec. 1 7 Cash Dividends 71300 Dividends Payable 71300 Dec. 31 v Income Summary 386000 (To close net income) Dec. 31 v Retained Earnings 279000 Stock Dividends 279000 (To close stock dividends) Dec. 31 v Retained Earnings II Cash Dividends (To close cash dividends)