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On January 1, 2020, FAANG Corp. had the following equity accounts. Share Capital-Ordinary ($5 par value, 48,000 shares issued and outstanding) Share Premium-Ordinary Retained Earnings $240,000 200,000 460,000 During the year, the following transactions occurred. Jul. 1 Declared a 30% stock dividend to stockholders of record on July 15, distributable August 15. On July 1, the market price of the stock was $7 per share. Issued the shares for the stock dividend. Aug. 15 Oct. 30 Split the shares on a 2-for-1 basis. Acquired 5,000 shares of the company's own stock at $4 per share. Declared a $0.20 per share dividend to stockholders of record on December 15, payable January 5, 2021. Determined that net income for the year was $188,000. Dec. 1 Dec. 31 Required: Journalize the transactions and the closing entries for net income and dividends. (Note: Write "no entry" when no entry is required.)

On January 1, 2020, FAANG Corp. had the following equity accounts. Share Capital-Ordinary ($5 par value, 48,000 shares issued and outstanding) Share Premium-Ordinary Retained Earnings $240,000 200,000 460,000 During the year, the following transactions occurred. Jul. 1 Declared a 30% stock dividend to stockholders of record on July 15, distributable August 15. On July 1, the market price of the stock was $7 per share. Issued the shares for the stock dividend. Aug. 15 Oct. 30 Split the shares on a 2-for-1 basis. Acquired 5,000 shares of the company's own stock at $4 per share. Declared a $0.20 per share dividend to stockholders of record on December 15, payable January 5, 2021. Determined that net income for the year was $188,000. Dec. 1 Dec. 31 Required: Journalize the transactions and the closing entries for net income and dividends. (Note: Write "no entry" when no entry is required.)

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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Date Debit Credit Dec. 1 Dec. 31 (closing entries)
Transcribed Image Text:Date Debit Credit Dec. 1 Dec. 31 (closing entries)
On January 1, 2020, FAANG Corp. had the following equity accounts. Share Capital-Ordinary ($5 par value, 48,000 shares issued and outstanding) Share Premium-Ordinary Retained Earnings $240,000 200,000 460,000 During the year, the following transactions occurred. Jul. 1 Declared a 30% stock dividend to stockholders of record on July 15, distributable August 15. On July 1, the market price of the stock was $7 per share. Aug. 15 Oct. 30 Nov. 15 Issued the shares for the stock dividend. Split the shares on a 2-for-1 basis. Acquired 5,000 shares of the company's own stock at $4 per share. Declared a $0.20 per share dividend to stockholders of record on December 15, Dec. 1 payable January 5, 2021. Determined that net income for the year was $188,000. Dec. 31 Required: Journalize the transactions and the closing entries for net income and dividends. (Note: Write "no entry" when no entry is required.) Date Debit Credit Jul. 1 Aug. 15 Oct. 30 Nov. 15
Transcribed Image Text:On January 1, 2020, FAANG Corp. had the following equity accounts. Share Capital-Ordinary ($5 par value, 48,000 shares issued and outstanding) Share Premium-Ordinary Retained Earnings $240,000 200,000 460,000 During the year, the following transactions occurred. Jul. 1 Declared a 30% stock dividend to stockholders of record on July 15, distributable August 15. On July 1, the market price of the stock was $7 per share. Aug. 15 Oct. 30 Nov. 15 Issued the shares for the stock dividend. Split the shares on a 2-for-1 basis. Acquired 5,000 shares of the company's own stock at $4 per share. Declared a $0.20 per share dividend to stockholders of record on December 15, Dec. 1 payable January 5, 2021. Determined that net income for the year was $188,000. Dec. 31 Required: Journalize the transactions and the closing entries for net income and dividends. (Note: Write "no entry" when no entry is required.) Date Debit Credit Jul. 1 Aug. 15 Oct. 30 Nov. 15
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