80.2K

Verified Solution

Link Copied!

P14-1B On January 1, 2017, Chen Corporation had the following stockholders' equity accounts. Common Stock ( $5 par value, 200,000 shares issued and outstanding) {:[$1","000","000],[200","000],[840","000]:} {:[" Paid-in Capital in Excess of Par-Common Stock ",200","000],[" Retained Earnings ",840","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 $15 per share. May 15 Issued the shares for the stock dividend. July 1 Announced a 2 -for- 1 stock split. T

P14-1B On January 1, 2017, Chen Corporation had the following stockholders' equity accounts. 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 $15 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 prior to the announcement was $17. (The new par value is $2.50.) Dec. 1 Declared a $0.50 per share cash dividend to stockholders of record on December 15, payable January 10, 2018. 31 Determined that net income for the year was $250,000. Instructions (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

Answer & Explanation Solved by verified expert

See Answer