Problem 14-01A a-c (Video) On January 1, 2020, Sandhill Corporation had the following stockholders' equity accounts. Common Stock ($24 par value, 64,000 shares issued and outstanding) Paid-in Capital in Excess of Par-Common Stock Retained Earnings $1,536,000 204,000 574,000 During the year, the following transactions occurred. Feb. 1 Mar. 1 Apr. 1 July 1 31 Dec. 1 31 Declared a $3 cash dividend per share to stockholders of record on February 15, payable March 1. Paid the dividend declared in February. Announced a 2-for-1 stock split. Prior to the split, the market price per share was $38. 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. Issued the shares for the stock dividend. Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2021. Determined that net income for the year was $318,500. Journalize the transactions and the closing entries for net income and dividends. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Feb. 1 Cash Dividends 192000 Dividends Payable 192000 Mar. 1 Dividends Payable 192000 Cash 192000 Apr.1 No Entry No Entry July 1 Stock Dividends 192000 Paid-in Capital in Excess of Par-Common Stock 38400 Common Stock Dividends Distributable 153600 July 31 Common Stock Dividends Distributable 153600 Common Stock 153600 Dec. 1 Cash Dividends X Dividends Payable Dec. 31 Income Summary 318500 Retained Earnings 318500 (To close net income) 00000000 Dec. 31 Retained Earnings Stock Dividends (To close stock dividends) X Dec. 31 Retained Earnings Cash Dividends (To close cash dividends) Enter the beginning balances, and post the entries to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.) (Post entries in the order of journal entries presented in the previous part.) Common Stock Date Explanation Ref Debit Credit Balance Jan. 1 Balance 1536000 July 31 Common Stock Dividends Distributable Date Explanation Ref Debit Credit Balance July 1 July 31 Paid-in Capital in Excess of Par-Common Stock Date Explanation Ref Debit Credit Balance Jan. 1 Balance July 1 Retained Earnings Date Explanation Ref Debit Credit Balance Jan. 1 Balance Dec. 31 Net income Dec. 31 - Stock dividend Dec. 31 Cash dividend Cash Dividends Date Explanation Ref DOO 001 1000 000 Debit Credit Balance Feb. 1 Dec. 1 Dec. 31 Stock Dividends Date Explanation Ref Debit Credit Balance X July 1 Dec. 31 Prepare a stockholders' equity section at December 31. (Enter account name only and do not provide descriptive information.) SANDHILL CORPORATION Balance Sheet (Partial) December 31, 2020 Stockholders' Equity Paid-in Capital Capital Stock Common Stock Additional Paid-in Capital Paid-in Capital in Excess of Par-Common Stock Total Paid-in Capital COCO Retained Earnings Total Stockholders' Equity Click if you would like to Show Work for this question: Open Show Work
