80.2K

Verified Solution

Link Copied!

P11.7 (LO 2, 3, 4), AP On January 1, 2022, Primo Corporation had the following stockh ers' equity accounts. Common Stock ($10 par value, 75,000 shares issued and outstanding) During the year, the following transactions occurred. Jan. 15 Feb. 15 Apr. 15 May 15 July 1 Dec. 1 31 Instructions Paid-in Capital in Excess of Par-Common Stock Retained Earnings $750,000 200,000 540,000 Declared a $1 cash dividend per share to stockholders of record on January 31, payable February 15. Paid the dividend declared in January. 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. Issued the shares for the stock dividend. Announced a 2-for-1 stock split. The market price per share at the time of the announcement was $15. (The new par value is $5.) Declared a $0.60 per share cash dividend to stockholders of record on December 15, payable January 10, 2023. Determined that net income for the year was $250,000.

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

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

c. Prepare a stockholders' equity section at December 31, 2022. c. Total stockholders' equity $1,566,000

During the year, the following transactions occurred. Jan. 15 Declared a \$1 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. July 1 Announced a 2 -for-1 stock split. The market price per share at the time of the announcement was $15. (The new par value is $5.) Dec. 1 Declared a $0.60 per share cash dividend to stockholders of recond on December 15- payable Jannary 10,2023. 31 Determined that net income for the year was $250,000. Instructions a. Joumalize the transactions and the closing entries for net income and dividends. b. Enter the beginning balances, and post the entries to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as necded.J c. Prepare a stockholders' equity section at December 31, 2022. c. Total stockholders' equity $1,566,000

Answer & Explanation Solved by verified expert

See Answer