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Ghatani Corporation reports the following stockholders" equity section on December 31, 2020. - Common stock; $5 par value; 400,000 shares authorized; 120,000 shares issued and outstanding - Paid-in capital in excess of par value, common stock - Retained earnings... S 600,000 ...165,000 400,000 $1,165,000 Total Ghatani Corporation completed the following transactions related to stockholders' equity in 2021. 1- Feb. 15, Directors declared a $1.00 per share cash dividend payable on March 31 to the Feb. 25 stockholders of record. 2- Mar. 01, Purchased 5,000 shares of its own common for $10 per share. 3- Mar. 31, Paid the cash dividend declared on Feb. 15. 4- July 10, Sold 2,000 of its treasury shares at $10 cash per share. 5- Oct. 25, Directors declared a 30% stock dividend when the share market price is $5. 6- Dec. 01, Distributed stock dividends declared on Oct. 25. 7- Dec. 15, The company implemented 3-for-2 stock split for its common stock. 8- Dec. 31, Closed the $100,000 credit balance in the Income Summary account (from net income). Required: nord onch of these transactions for 2021

Ghatani Corporation reports the following stockholders" equity section on December 31, 2020. - Common stock; $5 par value; 400,000 shares authorized; 120,000 shares issued and outstanding - Paid-in capital in excess of par value, common stock - Retained earnings... S 600,000 ...165,000 400,000 $1,165,000 Total Ghatani Corporation completed the following transactions related to stockholders' equity in 2021. 1- Feb. 15, Directors declared a $1.00 per share cash dividend payable on March 31 to the Feb. 25 stockholders of record. 2- Mar. 01, Purchased 5,000 shares of its own common for $10 per share. 3- Mar. 31, Paid the cash dividend declared on Feb. 15. 4- July 10, Sold 2,000 of its treasury shares at $10 cash per share. 5- Oct. 25, Directors declared a 30% stock dividend when the share market price is $5. 6- Dec. 01, Distributed stock dividends declared on Oct. 25. 7- Dec. 15, The company implemented 3-for-2 stock split for its common stock. 8- Dec. 31, Closed the $100,000 credit balance in the Income Summary account (from net income). Required: nord onch of these transactions for 2021

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ghatani Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $5 par value; 400,000 shares authorized; 120,000 shares issued and outstanding - Paid-in capital in excess of par value, common stock - Retained earnings.. S 600,000 165,000 ...400,000 $1,165,000 ... Total Ghatani Corporation completed the following transactions related to stockholders' equity in 2021. 1- Feb. 15, Directors declared a $1.00 per share cash dividend payable on March 31 to the Feb. 25 stockholders of record. 2- Mar. 01, Purchased 5,000 shares of its own common for $10 per share. 3- Mar. 31, Paid the cash dividend declared on Feb. 15. 4- July 10, Sold 2,000 of its treasury shares at $10 cash per share. 5- Oct. 25, Directors declared a 30% stock dividend when the share market price is S5. 6- Dec. 01, Distributed stock dividends declared on Oct. 25. 7- Dec. 15, The company implemented 3-for-2 stock split for its common stock. 8- Dec. 31, Closed the $100,000 credit balance in the Income Summary account (from net income). Required: Prepare journal entries to record each of these transactions for 2021. CLEARLY INDICATE THE DEBITS & CREDITS Example: XYZ Company pays $10,000 cash to purchase land Answer: Dr. Land Cr. Cash 10,000 10,000
Transcribed Image Text:Ghatani Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $5 par value; 400,000 shares authorized; 120,000 shares issued and outstanding - Paid-in capital in excess of par value, common stock - Retained earnings.. S 600,000 165,000 ...400,000 $1,165,000 ... Total Ghatani Corporation completed the following transactions related to stockholders' equity in 2021. 1- Feb. 15, Directors declared a $1.00 per share cash dividend payable on March 31 to the Feb. 25 stockholders of record. 2- Mar. 01, Purchased 5,000 shares of its own common for $10 per share. 3- Mar. 31, Paid the cash dividend declared on Feb. 15. 4- July 10, Sold 2,000 of its treasury shares at $10 cash per share. 5- Oct. 25, Directors declared a 30% stock dividend when the share market price is S5. 6- Dec. 01, Distributed stock dividends declared on Oct. 25. 7- Dec. 15, The company implemented 3-for-2 stock split for its common stock. 8- Dec. 31, Closed the $100,000 credit balance in the Income Summary account (from net income). Required: Prepare journal entries to record each of these transactions for 2021. CLEARLY INDICATE THE DEBITS & CREDITS Example: XYZ Company pays $10,000 cash to purchase land Answer: Dr. Land Cr. Cash 10,000 10,000
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