Problem 14-1A

On January 1, 2017, Geffrey Corporation had the following stockholders' equity accounts.

Common Stock ($26par value,52,500 shares issued and outstanding)$1,365,000Paid-in Capital in Excess of ParCommon Stock191,000Retained Earnings579,000

During the year, the following transactions occurred.

Feb.1Declared a$2cash dividend per share to stockholders of record on February 15, payable March 1.Mar.1Paid the dividend declared in February.Apr.1Announced a 2-for-1 stock split. Prior to the split, the market price per share was$39.July1Declared a10%stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was$15per share.31Issued the shares for the stock dividend.Dec.1Declared a$0.40per share dividend to stockholders of record on December 15, payable January 5, 2018.31Determined that net income for the year was$357,500.

1. Journalize the transactions and the closing entries for net income and dividends.
2. Enter the beginning balances, and post the entries to the stockholders' equity accounts.
3. Prepare a stockholders' equity section at December 31.