On January 1, 2020, Geffrey Corporation had the following stockholders equity accounts.
| Common Stock ($20 par value, 60,000 shares issued and outstanding) | 1,200,000 |
| Paid-in Capital in Excess par-Common Stock | 200,000 |
| Retained Earnings | 600,000 |
During the year, the following transactions occurred..
| Feb. 1 | Declared a $1 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 $36. |
| July 1 | Declared a 10% stock dividend to stockholders of record on July 15, attributable July 31. On July 1, the market price of the stock was $13 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, 2021. |
| 31 | Determined that net income for the year was $350,000. |
Instruction
- Journalize the transactions and the closing entry for net income and dividends.
- Enter the beginning balances, and post the entries to the stockholders' equity accounts.
- Prepare the stockholders' equity section at December 31.
Solution
a.
Geffrey Corporation
Journal Entries
Journal Entries
b.
c.
Geffrey Corporation
Balance Sheet (Partial)
December 31, 2020
Balance Sheet (Partial)
December 31, 2020
