1. Yellow Corporation had the following stockholders' equity accounts on December 31, 2020. Common Stock ($8 par value, 120,000 shares authorized, $ 320,000 40,000 shares issued and outstanding) Paid-in-Capital in Excess of Par - Common Stock $ 2,900,000 Retained Earnings $ 3,500,000 The following were transactions that occurred during 2021: 20-Feb Declared a $4 cash dividends per share on common stock 3-Mar Record date for cash dividends declared on 20 Feb 19-Mar Paid cash dividends 28-Apr Issued 15,000 shares of common stock for $16 per share 5-May Declared a $3 cash dividends per share on common stock 9-Jun Record date for cash dividends declared on 5 May 17-Jul Paid cash dividends 8-Aug Issued 23,500 shares of common stock for $20 per share 7-Sep Declared a $2 cash dividends per share on common stock 9-Oct Record date for cash di dends on 7 September 5-Nov Paid cash dividends 31-Dec Determined that net income for the year was $650,000 Instructions: 1. Journalize the transactions and prepare the necessary closing entries for net income and dividends.

1. Yellow Corporation had the following stockholders' equity accounts on December 31, 2020. Common Stock ($8 par value, 120,000 shares authorized, $ 320,000 40,000 shares issued and outstanding) Paid-in-Capital in Excess of Par - Common Stock $ 2,900,000 Retained Earnings $ 3,500,000 The following were transactions that occurred during 2021: 20-Feb Declared a $4 cash dividends per share on common stock 3-Mar Record date for cash dividends declared on 20 Feb 19-Mar Paid cash dividends 28-Apr Issued 15,000 shares of common stock for $16 per share 5-May Declared a $3 cash dividends per share on common stock 9-Jun Record date for cash dividends declared on 5 May 17-Jul Paid cash dividends 8-Aug Issued 23,500 shares of common stock for $20 per share 7-Sep Declared a $2 cash dividends per share on common stock 9-Oct Record date for cash di dends on 7 September 5-Nov Paid cash dividends 31-Dec Determined that net income for the year was $650,000 Instructions: 1. Journalize the transactions and prepare the necessary closing entries for net income and dividends.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The principles and objectives that guide the creation of accounting information under accrual…

A: The matching principle, which is related to accrual accounting, asserts that an expense must be…

Q: Which journal entries is correct when a business entity collects an accounts receivable? A. Cash -…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: For journal entries 1 through 12, Indicate the explanation that most closely describes it. You can…

A: Adjustment Journal Entry A form of accounting entry known as an adjustment journal entry is prepared…

Q: what accounts are disclosed on a balance sheet

A: Balance sheet means where all assets , liabilities and equity are shown in proper format

Q: What is the primary purpose of the trial balance in accounting? a. Record financial transactions b.…

A: Trial balance means the statement which is prepared after the ledgers has been prepared , to check…

Q: Detailed information about the individual accounts for all creditors is provided by Multiple Choice…

A: Detailed information about the individual accounts for all creditors is provided by the ''accounts…

Q: The journal entry to record the amount receivable when a call is made by the company is: Select one:…

A: Calls on Share: Calls on shares signify the company's right on somewhat paid offers to pay part or…

Q: ESPAÑOL INGLÉS FRANCÉS On which of the following dates related to the declaration and payment of…

A: The date of record is the date upon which a corporation reviews its records to determine who the…

Q: Elaborate on the concept of the accounting cycle and the various steps involved in preparing…

A: Accounting cycle refers to the series of way or processes that a company follows to record,…

Q: How to calculate the retained earnings in a general journal?

A: Retained earnings refers to the amount of money which a business keeps out of its profits for…

Q: The following contains the various steps of the financial reporting process. Place these steps in…

Q: American Laser, incorporated, reported the following account balances on January 1. Debit Credit…

A: Dividends are declared from the retained earnings , hence declaring of dividends decrease the…

Q: How do you prepare annual financial statements?

A: In terms of accountancy, financial statements can be defined as the reports which provide the users…

Q: Prepare a retained earnings statement.

Q: How do we get the accounting records ready to prepare financial statements?

A: Explanation - There are three statements of the organization which show different accounting…

Q: Identify several items that may require disclosure in thenotes that accompany financial statements.

A: Definition: Financial statements: Financial statements are condensed summary of transactions…

Q: Which of the following steps in the accounting cycle comes before posting entries to accounts?…

A: Lets understand the basics. Accounting cycle is cycle through which recording and processing of…

Q: Describe the accrual accounting concepts that appear in financial statements.

A: Accounting is an art of recording, classifying, analyzing and summarizing the financial statement to…

Q: List the DPSystems accounting system's account number and category charts

A: The DP accounting system account numbers and primary categories are listed as follows: A list of…

Q: Define accounting earnings.

A: Accounting Earnings: Accounting Earnings is a Earning which stated on income statement. Accounting…

Q: Which of the following dates where no necessary journal entry will be recorded in accounting for…

A: Journal entry on the date of dividend declaration: Date Accounts Debit Credit Cash…

Q: 1. Complete the statement: closing entries ________ A. Reflect the net income for the accounting…

A: closing entries ________ A. Reflect the net income for the accounting period B. Are also posted in…

Q: For Journal entries 1 through 12, Indicate the explanation that most closely describes it. You can…

A: Journal entry means the book of prime entry where the transaction is recorded for the first time and…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Journalize the transactions and prepare the necessary closing entries for net income and dividends

1. Yellow Corporation had the following stockholders' equity accounts on December 31,
2020.
Common Stock ($8 par value, 120,000 shares authorized,
$ 320,000
40,000 shares issued and outstanding)
Paid-in-Capital in Excess of Par - Common Stock
$ 2,900,000
Retained Earnings
$ 3,500,000
The following were transactions that occurred during 2021:
20-Feb
Declared a $4 cash dividends per share on common stock
3-Mar
Record date for cash dividends declared on 20 Feb
19-Mar
Paid cash dividends
28-Apr
Issued 15,000 shares of common stock for $16 per share
5-Мay
Declared a $3 cash dividends per share on common stock
9-Jun
Record date for cash dividends declared on 5 May
17-Jul
Paid cash dividends
8-Aug
Issued 23,500 shares of common stock for $20 per share
7-Sep
Declared a $2 cash dividends per share on common stock
9-Oct
Record date for cash dividends declared on 7 September
5-Nov
Paid cash dividends
31-Dec
Determined that net income for the year was $650,000
Instructions:
1. Journalize the transactions and prepare the necessary closing entries for net income
and dividends.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Dividend

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Explain where the various types of accounts are reported on financial statements.
A company paid $660,000 cash to buy a group of plant assets. An independent appraiser assigned the following values to the assets acquired: Land Building Equipment Total $ 297,500 382,500 170,000 $ 850,000 Prepare the journal entry to record the acquisition of these assets. Note: Round answers to the nearest whole dollar amount. View transaction list Journal entry worksheet
During the current year, Brewer Company acquired all of the outstanding common stock of Miller Inc. paying $11,000,000 cash The book values and fair values of Miller's assets and liabilities acquired are listed below: Fair Value $ 1,125,000 3, 000, 000 10,625, 000 2, 000, 000 3, 125, 000 Book Value Accounts receivable Inventories Property, plant, and equipment Accounts payable Bonds payable $1, 300, 000 1, 700, 000 8,000, 000 2, 000, 000 3,500, 000 Required: Prepare the journal entry to record the acquisition by Brewer Company. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the acquisition by Brewer Company.
Describe and illustrate the kind of information that should be reported in notes to the financial statements.
Which of the following items is considered an original source document? Select one: a. accounts receivable b. company expense account c. purchase order d. general ledger
On which financial statement are permanent accounts reported?
The account that is brought up to date after the closing entries have been journalized and posted is the ____. Select one: a. Capital Account b. Sales account c. Capital Stock account d. Purchases account
If a journal entry includes a debit or credit to the retained earnings account, it is most likely which of the following? A. A closing entry B. An adjusting entry C. An ordinary transaction entry D outside of the accounting cycle
Which account records is the main source of information used to prepare the financial statements
Describe the purpose of the balance sheet and disclosure notes in the financial statement, give examples.
Which of the following dates do NOT require a journal entry? Group of answer choices All dividend dates require a journal entry Date of payment Date of declaration Date of record
On which of the following dates related to the declaration and payment of dividends is a journal entry NOT made? a. date of payment. b. date of record. c. date of declaration.