Reference no: EM132606930

On January 1, 2020, Blossom Corporation had the following stockholders' equity accounts.

Common Stock ($20 par value, 50,000 shares issued and outstanding) $1,000,000
Paid-in Capital in Excess of Par-Common Stock 190,000
Retained Earnings 550,000

During the year, the following transactions occurred.

Feb. 1 Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1.
Mar. 1 Paid the dividend declared in February.
Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $35.
July 1 Declared a 10% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share.
31 Issued the shares for the stock dividend.
Dec. 1 Declared a $0.30 per share dividend to stockholders of record on December 15, payable January 5, 2021.
31 Determined that net income for the year was $300,000.

Question 1: Journal the transactions and the closing entries for net income and dividends.

Question 2: Enter the beginning balances, and post the entries to the stockholders' equity accounts.

Question 3: Prepare a stockholders' equity section at December 31.