90.2K

Verified Solution

Link Copied!

Problem 11-7A (Part Level Submission) On January 1, 2019, Swifty Corporation had the following stockholders' equity accounts. Common Stock ($10 par value, 77,200 shares issued and outstanding) $772,000 Paid-in Capital in Excess of Par Value-Common Stock 193,000 Retained Earnings 524,000 During the year, the following transactions occurred. Jan. 15 Declared a $1.10 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 $16 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 $14. (The new par value is $5.) Dec. 1 Declared a $0.50 per share cash dividend to stockholders of record on December 15, payable January 10, 2020. Dec. 31 Determined that net income for the year was $270,000. Date Account Titles and Explanation Debit Credit Jan. 15 Cash Dividends 849200 Dividends Payable 849200 Feb. 15 Dividends Payable 849200 T Cash 849200 Apr. 15 > Stock Dividends 1235200 Common Stock Dividends Distributable 772000 Paid-in Capital in Excess of Par-Common Stock 463200 May 15 ) Common Stock Dividends Distributable 772000 Common Stock 772000 July 1 No Entry No Entry July 1 | No Entry No Entry Dec. 1 Cash Dividends Dividends Payable Payable Dec. 31 Income Summary Retained Earnings WID) DO DO ILOIDO DO DO (To close cash dividends) Dec. 31 Retained Earnings Cash Dividends (To close stock dividends) Dec. 31 Retained Earnings Stock Dividends (To close net income)

Answer & Explanation Solved by verified expert

See Answer