Reference no: EM132794291

Problem 1: Journalize the transactions and the closing entries for net income and dividends. Then, enter the beginning balances, and post the entries to the stockholders' equity accounts.

Information:

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

• Common Stock ($22 par value, 54,000 shares issued and outstanding) $1,188,000
• Paid-in Capital in Excess of Par-Common Stock 199,000
• Retained Earnings 626,000

During the year, the following transactions occurred.

Feb. 1 Declared a $3 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 $15 per share.
Jul. 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 $321,500.