On January 1, 2017, Ven Corporation had the following stockholders’ equity accounts. Common Stock (no par value, 90,000 shares issued and outstanding) $1,600,000 Retained Earnings 500,000 During the year, the following transactions occurred. Feb. 1 Declared a $1 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 3-for-1 stock split. Prior to the split, the market price per share was $36. July 1 Declared a 5% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $16 per share. 31 Issued the shares for the stock dividend. Dec. 1 Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2018. 31 Determined that net income for the year was $350,000 Instructions Journalize the transactions and closing entries for income and dividend.
On January 1, 2017, Ven Corporation had the following
Common Stock (no par value, 90,000 shares issued and outstanding) $1,600,000
Retained Earnings 500,000
During the year, the following transactions occurred.
Feb. 1 Declared a $1 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 3-for-1 stock split. Prior to the split, the market price per share was $36.
July 1 Declared a 5% stock dividend
to stockholders of record on July 15, distributable
July 31. On July 1, the market price of the stock was $16 per share.
31 Issued the shares for the stock dividend.
Dec.
1 Declared a $0.50 per share dividend
to stockholders of record on December 15, payable January 5, 2018.
31 Determined that net income for the year was $350,000
Instructions
Journalize the transactions and closing entries for income and dividend.
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