Reference no: EM133140413
Question - On January 1, 2018, Alexander Company had the following equity accounts.
Share Capital-Ordinary (€25 par value, 192,000 shares issued and outstanding) €4,800,000
Share Premium-Ordinary 800,000
Retained Earnings 2,400,000
During the year, the following transactions occurred.
Feb. 1 Declared a €1 cash dividend per share to shareholders of record on February 15, payable March 15.
Mar. 15 Paid the dividend declared in February.
Apr. 30 Announced a 5-for-1 share split. Prior to the split, the market price per share was €36.
July 1 Declared a 10% share dividend to shareholders of record on July 15, distributable July 31. On July 1, the market price was €7 per share.
July 31 Issued the shares for the share dividend.
Dec. 1 Declared a €0.40 per share cash dividend to shareholders of record on December 15, payable January 5, 2019.
Dec. 31 Determined that net income for the year was €1,400,000.
Required -
(a) Journalize the transactions and the closing entries for net income and dividends.
(b) Enter the beginning balances, and post the entries to the equity accounts. (Note: Open additional equity accounts as needed.)
(c) Prepare an equity section at December 31.