On January 1, 2017, Geffrey Corporation had the following stockholders’ equity accounts. Common Stock ($26 par value, 62,000 shares issued and outstanding) $1,612,000 Paid-in Capital in Excess of Par—Common Stock 203,000 Retained Earnings 569,000 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 $39. 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 $0.60 per share dividend to stockholders of record on December 15, payable January 5, 2018. 31 Determined that net income for the year was $327,000. 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.)

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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Problem 14-1A

On January 1, 2017, Geffrey Corporation had the following stockholders’ equity accounts.

Common Stock ($26 par value, 62,000 shares issued and outstanding)		$1,612,000
Paid-in Capital in Excess of Par—Common Stock		203,000
Retained Earnings		569,000

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 $39.
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 $0.60 per share dividend to stockholders of record on December 15, payable January 5, 2018.
31		Determined that net income for the year was $327,000.

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)

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Enter the beginning balances, and post the entries to the stockholders’ equity accounts. (Note: Open additional stockholders’ equity accounts as needed.) (Post entries in the order of journal entries presented in the previous part.)

Common Stock
Date	Explanation	Ref	Debit	Credit	Balance
	Balance	√
	Adjusting

Common Stock Dividends Distributable
Date	Explanation	Ref	Debit	Credit	Balance



Paid-in Capital in Excess of Par—Common Stock
Date	Explanation	Ref	Debit	Credit	Balance
	Balance	√


Retained Earnings
Date	Explanation	Ref	Debit	Credit	Balance
	Balance	√
	Net income
	Stock dividend
	Cash dividend

Cash Dividends
Date	Explanation	Ref	Debit	Credit	Balance




Stock Dividends
Date	Explanation	Ref	Debit	Credit	Balance

LINK TO TEXT

Prepare a stockholders’ equity section at December 31. (Enter account name only and do not provide descriptive information.)

GEFFREY CORPORATION Balance Sheet (Partial)



			$




			$

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