question :

On January 1, 2020, Primo plc had the following equity accounts.

Share CapitalOrdinary (10 par value, 75,000 shares

issued and outstanding) 750,000

Share PremiumOrdinary 200,000

Retained Earnings 540,000

During the year, the following transactions occurred.

Jan 2 issued additional 20000 ordinary shares at $15 per share in cash

Jan 5 purchased 5000 shares for treasury at $15 per share.

Jan. 15 Declared a 2 cash dividend per share to shareholders of record on January 31, payable February 15.

Feb. 15 Paid the dividend declared in January.

Apr. 15 Declared and issued a 10% share dividend to shareholders, the market price of the shares was 15 per share.

May 15 sold 3000 shares from treasury for $18 per share.

Dec. 1 Declared a 0.60 per share cash dividend to shareholders of record on December 15, payable January 10, 2021.

31 Determined that net income for the year was 300,000.

Instructions

Journalize the transactions and the closing entries for net income and dividends.

Enter the beginning balances, and post the entries to the equity accounts. (Note: Open additional equity accounts as needed.)

Prepare an equity section at December 31