On January 1, 2020, Skysong, Inc. had the following stockholders’ equity accounts.Common Stock ($26 par value, 50,000 shares issued and outstanding) $1,300,000Paid-in Capital in Excess of Par—Common Stock 199,000Retained Earnings 558,000During the year, the following transactions occurred.Feb. 1 Declared a $2 cash dividend per share to stockholders of record on February 15, payable March 1.Mar. 1 Paid the dividend declared in February.Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $37.July 1 Declared a 15% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share.31 Issued the shares for the stock dividend.Dec. 1 Declared a $0.30 per share dividend to stockholders of record on December 15, payable January 5, 2021.31 Determined that net income for the year was $344,000. A.) Journalize the transactions and the closing entries for net income and dividends. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCredit (To close net income) (To close stock dividends) (To close cash dividends)B.) Enter the beginning balances, and post the entries to the stockholders’ equity accounts. (Use T-accounts.) (Note: Open additional stockholders’ equity accounts as needed.)Common Stock Retained Earning Paid-in Capital in Excess of Par Value-Common Common Stock Dividends Distributable Cash Dividends Stock Dividends C.) Prepare a stockholders’ equity section at December 31.Skysong, Inc.Balance Sheet (Partial)

Shareholders: Shareholders are the owners of the company having ownership in the stock of the…

A.) Journalize the transactions and the closing entries for net income and dividends. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To close net income) (To close stock dividends) (To close cash dividends) B.) Enter the beginning balances, and post the entries to the stockholders’ equity accounts. (Use T-accounts.) (Note: Open additional stockholders’ equity accounts as needed.) Common Stock Retained Earning Paid-in Capital in Excess of Par Value-Common Common Stock Dividends Distributable Cash Dividends Stock Dividends C.) Prepare a stockholders’ equity section at December 31. Skysong, Inc. Balance Sheet (Partial)

A.) Journalize the transactions and the closing entries for net income and dividends. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To close net income) (To close stock dividends) (To close cash dividends) B.) Enter the beginning balances, and post the entries to the stockholders’ equity accounts. (Use T-accounts.) (Note: Open additional stockholders’ equity accounts as needed.) Common Stock Retained Earning Paid-in Capital in Excess of Par Value-Common Common Stock Dividends Distributable Cash Dividends Stock Dividends C.) Prepare a stockholders’ equity section at December 31. Skysong, Inc. Balance Sheet (Partial)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On January 1, 2020, Skysong, Inc. had the following stockholders’ equity accounts.

Common Stock ($26 par value, 50,000 shares issued and outstanding)		$1,300,000
Paid-in Capital in Excess of Par—Common Stock		199,000
Retained Earnings		558,000

During the year, the following transactions occurred.

Feb. 1		Declared a $2 cash dividend per share to stockholders of record on February 15, payable March 1.
Mar. 1		Paid the dividend declared in February.
Apr. 1		Announced a 2-for-1 stock split. Prior to the split, the market price per share was $37.
July 1		Declared a 15% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share.
31		Issued the shares for the stock dividend.
Dec. 1		Declared a $0.30 per share dividend to stockholders of record on December 15, payable January 5, 2021.
31		Determined that net income for the year was $344,000.

Date	Account Titles and Explanation	Debit	Credit















	(To close net income)


	(To close stock dividends)


	(To close cash dividends)

B.) Enter the beginning balances, and post the entries to the stockholders’ equity accounts. (Use T-accounts.) (Note: Open additional stockholders’ equity accounts as needed.)

Common Stock

Retained Earning

Paid-in Capital in Excess of Par Value-Common

Common Stock Dividends Distributable

Cash Dividends

Stock Dividends

C.) Prepare a stockholders’ equity section at December 31.

Skysong, Inc. Balance Sheet (Partial)

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