Prepare the journal entries and closing entries

Assignment Help Financial Accounting

Reference no: EM131205250

On January 1, 2014, Craig Corp. had the following stockholders' equity accounts:

Common Stock, $20 par value, 60,000 shares issues and outstanding $1,200,000

Additional Paid-In Capital- Common Stock 200,000

Retained Earnings 600,000

During 2014, the following transactions occurred:

Feb. 1 Declared a $1.00 per share cash dividend to stockholders of record on February 15, payable on March 1.

Mar.1 Paid the dividend declared in February.

Apr. 1 Issued 10,000 shares on common stock at the market price of $28 per share.

May 1 Issued a 2-for-1 stock split on the common shares. Prior to the split, the market price of the stock was $30.

Jul. 1 Declared a 10% stock dividend to stockholders of record on July 15, distributable on July 31. On July 1, the market price of the stock was $14 per share.

Jul. 31 Issued the shares for the stock dividend.

Nov. 1 Purchased 5,000 shares of treasury stock at $12 per share.

Dec. 1 Reissued 3,000 of the treasury shares at $13 per share.

Dec. 31 Determined that the net income for the year was $350,000.

REQUIRED:

a) Prepare the journal entries, and closing entries, necessary for the 2014 transactions.

b) Prepare the stockholders' equity section on the December 31, 2104 balance sheet.

Reference no: EM131205250

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