Dawls Corporation reported stockholders' equity on December 31 of the prior year as follows: Common stock, $5 par value, 1,000,000 shares authorized, 500,000 $2,500,000 shares issued Contributed capital in excess of par, common stock Retained earnings 1,000,000 3,000,000 The following selected transactions occurred during the current year: Feb. 15 The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share. Mar. 9 Paid the stock dividend. May 1 A cash dividend of $0.30 per share was declared by the board of directors to stockholders of record on May 20, payable June 1. June 1 Paid the cash dividend. Aug. 20 The board decided to split the stock 4-for-1, effective on September 1 Sept. 1 Stock split 4-for-1. Dec. 31 Eamed a net income of $800,000 for the curent year. Prepare the journal entries for the transactions and a statement of retained earnings as of December 31 of the current year.
Dawls Corporation reported
Common stock, $5 par value, 1,000,000 shares authorized, 500,000 $2,500,000 shares issued
Contributed capital in excess of par, common stock
1,000,000
3,000,000
The following selected transactions occurred during the current year:
Feb. 15
The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share.
Mar. 9
Paid the stock dividend.
May 1
A cash dividend of $0.30 per share was declared by the board of directors to stockholders of record on May 20, payable June 1.
June 1
Paid the cash dividend.
Aug. 20
The board decided to split the stock 4-for-1, effective on September 1
Sept. 1
Stock split 4-for-1.
Dec. 31
Eamed a net income of $800,000 for the curent year.
Prepare the
A journal entry is a form of accounting entry that is used to report a business transaction in a company's accounting records.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
