Reference no: EM132885093

Question - On January 1, 2017, Geffrey Corporation had the following stockholders' equity accounts. Common Stock ($26 par value, 52,500 shares issued and outstanding) $1,365,000

Paid-in Capital in Excess of Par-Common Stock 191,000

Retained Earnings 579,000

During the year, the following transactions occurred.

Feb. 1 Declared a $2 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 $15 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, 2018.

Dec. 31 Determined that net income for the year was $357,500.

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.

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