On January 1, 2021, Ridgewood Corporation, a publicly traded company, had the following shareholders' equity accounts: Common shares (unlimited number of shares authorized, 49,500 shares issued) Retained earnings Accumulated other comprehensive income During the year, the following transactions occurred: $1,980,000 1,278,000 Oct. 1 Effected a 2-for-1 stock split. On October 1, the share price was $15. Dec. 31 Determined that net income for the year was $565,200. 61,200 Jan. 15 Declared a $1.25 per share cash dividend to shareholders of record on January 31, payable February 15. Apr. 16 Declared a 10% stock dividend to shareholders of record on April 30, distributable May 15. On April 16, April 30, and May 15, the share prices were $12, $11.80, and $11.90, respectively.
On January 1, 2021, Ridgewood Corporation, a publicly traded company, had the following shareholders' equity accounts: Common shares (unlimited number of shares authorized, 49,500 shares issued) Retained earnings Accumulated other comprehensive income During the year, the following transactions occurred: $1,980,000 1,278,000 Oct. 1 Effected a 2-for-1 stock split. On October 1, the share price was $15. Dec. 31 Determined that net income for the year was $565,200. 61,200 Jan. 15 Declared a $1.25 per share cash dividend to shareholders of record on January 31, payable February 15. Apr. 16 Declared a 10% stock dividend to shareholders of record on April 30, distributable May 15. On April 16, April 30, and May 15, the share prices were $12, $11.80, and $11.90, respectively.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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RECORD TRANSACTION ENTRIES AND CREATE 2 CLOSING ENTRIES AT THE END TO CLOSE DIVIDENDS AND NET INCOME
Transcribed Image Text:On January 1, 2021, Ridgewood Corporation, a publicly traded company, had the following shareholders' equity accounts:
Common shares (unlimited number of shares authorized, 49,500 shares issued)
Retained earnings
Accumulated other comprehensive income
During the year, the following transactions occurred:
Oct. 1
Dec.
$1,980,000
Jan. 15 Declared a $1.25 per share cash dividend to shareholders of record on January 31, payable February 15.
Apr. 16
1,278,000
31 Determined that net income for the year was $565,200.
61,200
Declared a 10% stock dividend to shareholders of record on April 30, distributable May 15. On April 16, April 30, and
May 15, the share prices were $12, $11.80, and $11.90, respectively.
Effected a 2-for-1 stock split. On October 1, the share price was $15.
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