On January 1, 20--, Dover Company’s retained earnings accounts had the following balances: Appropriated for printing press: $50,000 Unappropriated retained earnings: $800,000 $850,000 During the year ended December 31, 20--, Dover completed the following selected transactions: Transactions: Mar. 15 Declared a semiannual dividend of $0.30 per share on preferred stock and $0.40 per share on common stock to shareholders of record on April 5, payable on April 10. Currently, 5,000 shares of $10 par preferred stock and 30,000 shares of $2 par common stock are outstanding. Apr. 10 Paid the cash dividend. Sept. 15 Declared semiannual dividend of $0.30 per share on preferred stock and $0.40 per share on common stock to shareholders of record on October 5, payable on October 10. Oct. 10 Paid the cash dividend. Nov. 10 Board of directors declared a two-for-one common stock split. Dec. 31 Net income for 20-- was $135,000. Closed the income summary account. 31 Closed the cash dividends account. Required: 1. Prepare journal entries for the transactions. 2. Post all entries affecting the appropriated and unappropriated retained earnings accounts to T accounts. 3. Prepare a statement of retained earnings for the year ended December 31, 20--
On January 1, 20--, Dover Company’s retained earnings accounts had the following balances: Appropriated for printing press: $50,000 Unappropriated retained earnings: $800,000 $850,000 During the year ended December 31, 20--, Dover completed the following selected transactions: Transactions: Mar. 15 Declared a semiannual dividend of $0.30 per share on preferred stock and $0.40 per share on common stock to shareholders of record on April 5, payable on April 10. Currently, 5,000 shares of $10 par preferred stock and 30,000 shares of $2 par common stock are outstanding. Apr. 10 Paid the cash dividend. Sept. 15 Declared semiannual dividend of $0.30 per share on preferred stock and $0.40 per share on common stock to shareholders of record on October 5, payable on October 10. Oct. 10 Paid the cash dividend. Nov. 10 Board of directors declared a two-for-one common stock split. Dec. 31 Net income for 20-- was $135,000. Closed the income summary account. 31 Closed the cash dividends account. Required: 1. Prepare journal entries for the transactions. 2. Post all entries affecting the appropriated and unappropriated retained earnings accounts to T accounts. 3. Prepare a statement of retained earnings for the year ended December 31, 20--
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings
Section: Chapter Questions
Problem 11SPA
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Question
On January 1, 20--, Dover Company’s
Appropriated for printing press: $50,000
Unappropriated retained earnings: $800,000
$850,000
During the year ended December 31, 20--, Dover completed the following selected transactions:
Transactions: | ||
Mar. | 15 | Declared a semiannual dividend of $0.30 per share on preferred stock and $0.40 per share on common stock to shareholders of record on April 5, payable on April 10. Currently, 5,000 shares of $10 par preferred stock and 30,000 shares of $2 par common stock are outstanding. |
Apr. | 10 | Paid the cash dividend. |
Sept. | 15 | Declared semiannual dividend of $0.30 per share on preferred stock and $0.40 per share on common stock to shareholders of record on October 5, payable on October 10. |
Oct. | 10 | Paid the cash dividend. |
Nov. | 10 | Board of directors declared a two-for-one common stock split. |
Dec. | 31 | Net income for 20-- was $135,000. Closed the income summary account. |
31 | Closed the cash dividends account. |
Required:
1. Prepare journal entries for the transactions.
2. Post all entries affecting the appropriated and unappropriated retained earnings accounts to T accounts.
3. Prepare a statement of retained earnings for the year ended December 31, 20--.
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What are the closing entries to closed the cash dividends accounts
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