Reference no: EM132740712
Below is the stockholders' equity section of the Withers Corporation balance sheet at the start of business on January 1, 2019:
Common Stock: $240,000
2,000,000 shares authorized: 40,000 shares of $6 par value sock issued and outstanding:
Common Stock-Additional Paid-in Capital: $2,160,000
$2,400,000
Retained Earnings: $3,600,000
Total Stockholders' Equity $6,000,000
The relevant transactions affecting Withers' Stockholders' Equity accounts in 2019 were as follows:
- Jan. 1: Issued 30,000 shares of $100 Par Value, 4% Preferred Stock
- Jan. 2: Declared a 2:1 stock split
- Feb.1: Purchased equipment valued at $240,000 by issuing 8,000 shares of common stock.
- Apr.1: Declared and issued a 10% stock dividend when the common share price was $36.
- June 1: Reacquired 3,000 shares @ $42 per share.
- Dec. 15: Declared a $2 per dividend on the common that will be paid on December 30.
- Dec. 30: Paid the December 15th dividend.
- Dec. 31: The 2019 net income for Withers was $970,000.
REQUIRED:
Problem 1: Make the necessary journal entries for each of the above dates.