Reference no: EM132622035

Question - On January 1, 2020, Sheridan Corporation had the following stockholders' equity accounts.

Common Stock ($22 par value, 60,500 shares issued and outstanding) $1,331,000

Paid-in Capital in Excess of Par-Common Stock 197,000

Retained Earnings 556,000

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 $39.

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.

July 31 Issued the shares for the stock dividend.

Dec. 1 Declared a $0.40 per share dividend to stockholders of record on December 15, payable January 5, 2021.

Dec. 31 Determined that net income for the year was $354,000.

Required -

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

2. Enter the beginning balances, and post the entries to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.)

3. Complete a stockholders' equity section at December 31.