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Problem 11-8A (Part Level Submission) On January 1, 2017, Bridgeport Corp. had these stockholders equity accounts. Common Stock ($10 par value, 67,000 shares issued and
Problem 11-8A (Part Level Submission)
On January 1, 2017, Bridgeport Corp. had these stockholders equity accounts.
Common Stock ($10 par value, 67,000 shares issued and outstanding) | $670,000 | |
Paid-in Capital in Excess of Par Value | 516,500 | |
Retained Earnings | 665,000 |
During the year, the following transactions occurred.
Jan. | 15 | Declared a $0.60 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 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $14 per share. | |
May | 15 | Issued the shares for the stock dividend. | |
Dec. | 1 | Declared a $0.50 per share cash dividend to stockholders of record on December 15, payable January 10, 2018. | |
Dec. | 31 | Determined that net income for the year was $385,000. |
(b)
Enter the beginning balances and post the entries to the stockholders equity T-accounts. (Post entries in the order of journal entries posted in the previous part. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.)
Credit Date Account Titles and Explanation Debit Jan. 15 Cash Dividends 40,200 Dividends Payable 40,200 Feb. 15 Dividends Payable 40,200 Cash 40,200 Apr. 15Stock Dividends 93,800 Common Stock Dividends Distributable 67,000 26,800 Paid-in Capital in Excess of Par Value-Common St May 15Common Stock Dividends Distributable 67,000 Common Stock 67,000 Dec. 1 Cash Dividends 36,850 Dividends Payable 36,850 385,000 Dec. 31 | |Income Summary 385,000 Retained Earnings (To close net income) To Close net Income Dec. 31 | Retained Earnings 93,800 93,800 Stock Dividends (To close stock dividends) 7.00 77,050 Dec. 31 | Retained Earnings Cash Dividends 77,050 (To close cash dividends) Common Stock Retained Earnings Paid-in Capital in Excess of Par Value Cash Dividends Common Stock Dividends Distributable Stock Dividends
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