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Problem 2: On January 1, 2020 Crinkle Cut Fries Corporation had the following stockholders equity accounts.

Common Stock ($5 par value, 200,000 shares issued and outstanding) Paid in capital in Excess of Par- Common Stock

Retained Earnings

During the year, the following transactions occurred.

$1,000,000 200,000 840,000

Jan 15 Declared a $1 cash dividend per share to stockholders of record on January 31, payable February

th 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.

Jul 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, 2021

31 Determined that net income for the year was $250,000.

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

Problem 3: Brett Adamo Corporation had the following stockholders equity accounts on January 1, 2020. Common Stock ($1 par) $400,000, paid-in capital in Excess of Par-Common Stock $500,000, and Retained earnings $100,000. In 2020, the company had the following treasury stock transactions.

Mar. 1 June. 1 Sept 1 Dec 1

Purchased 5,000 shares at $7 per share. Sold 1,000 shares at $10 per share.

Sold 2,000 shares at $9 per share

Sold 1,000 shares at $5 per share.

Brett Adamo Corp uses the cost method of accounting for treasury stock.

A. Journalize the treasury stock transactions for 2020.

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