Reference no: EM132713602
On January 1, 2012, Syed Corporation had the following stockholders' equity accounts.
Common Stock ($5 par value, 200,000 shares issued and outstanding) $1,000,000
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. 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, 2013.
31 Determined that net income for the year was $250,000.
Instructions
Problem (a) Journalize the transactions and the closing entry for net income.
Problem (b) Enter the beginning balances, and post the entries to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.)
Problem (c) Prepare a stockholders' equity section at December 31.