On January 1, 2020, vic Corporation had the following shareholders’ equity accounts: vic Corporation Balance Sheet (partial) January 1, 2020 Shareholders’ equity: Common shares (unlimited number of shares authorized, 90,000 shares outstanding) $ 1,800,000 Retained earnings 1,080,000 Total shareholders’ equity $2,880,000 During the year, the following transactions occurred: Jan. 15 Declared a $1 cash dividend per share to shareholders, payable February 15. The date of record is Jan 31. Feb. 10 Issued 2,500 common shares when the share price is $10 in exchange for land with a fair market value of $30,000. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared and distributed a 10% stock dividend to common shareholders of record on April 15. On April 15, the market price of each share was $13. July 1 Announced a 2-for-1 stock split. The market price per share prior to the announcement was $15. Dec. 1 Declared a $0.50 per share cash dividend to shareholders, payable January 10, 2021. Net income is $53,000. Required: 1- Journalize the transactions noted above (Journal entry explanations are not required) 2- Prepare the shareholders’ equity section of the balance sheet at December 31, 2020.
On January 1, 2020, vic Corporation had the following shareholders’ equity accounts:
vic Corporation
January 1, 2020
Shareholders’ equity:
Common shares (unlimited number of shares authorized, 90,000 shares outstanding)
$ 1,800,000
Retained earnings
1,080,000
Total shareholders’ equity
$2,880,000
During the year, the following transactions occurred:
Jan. 15 Declared a $1 cash dividend per share to shareholders, payable February 15. The date of
record is Jan 31.
Feb. 10
Issued 2,500 common shares when the share price is $10 in exchange for land
with a fair market value of $30,000.
Feb. 15
Paid the dividend declared in January.
Apr. 15
Declared and distributed a 10% stock dividend to common shareholders of record
on April 15. On April 15, the market price of each share was $13.
July 1 Announced a 2-for-1 stock split. The market price per share prior to the announcement
was $15.
Dec. 1 Declared a $0.50 per share cash dividend to shareholders, payable January 10, 2021.
Net income is $53,000.
Required:
1- Journalize the transactions noted above (
2- Prepare the shareholders’ equity section of the balance sheet at December 31, 2020.
Step by step
Solved in 2 steps with 3 images
