Reference no: EM133174707

Question - On Jan 31, 2021 Apollo Corp. had an $811,000 credit balance in its Retained Earnings account. On that date, the corporation had unlimited common shares authorized and 60,000 issued and outstanding. The shares were initially sold for $12 each. Apollo then completed the following transactions:

Feb 13 - the board of directors declared a $2 per share cash dividend, payable on March 14 to the March 1 shareholders of record

Mar 1 - date of record

Mar 14 - paid the dividend declared on Feb 13

May 22 - the board of directors declared a 10% stock dividend, distributable on June 18 to the June 4 shareholders of record. The shares were selling at $15 per share that day

June 4 - date of record; shares were trading for $16

June 18 - distributed the stock dividend declared on May 22; shares were trading for $17 that day

June 30 - With a June 30 year-end, the Income Summary account has a credit balance of $94,000

July 5 - the board of directors voted to effect a 2 for 1 stock split, which was completed on July 28. Shares traded for $17 on July 5 and $18 on July 28.

Required -

A) Prepare the journal entries to record these transactions and to close the income summary account at year end.

B) Prepare the shareholders' equity section of the balance sheet for the corporation dated July 28.