On January 1, 2022, Pharoah Company had the following stockholders' equity accounts.Common Stock ($20 par value, 58,700 shares issued and outstanding)$1,174,000Paid-in Capital in Excess of Par-Common Stock196,000Retained Earnings555,000During the year, the following transactions occurred.Feb. 1Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1.Mar. 1Paid the dividend declared in February.Apr. 1Announced a 2-for-1 stock split. Prior to the split, the market price per share was $37.July 1Declared a 10% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price ofthe stock was $14 per share.31Issued the shares for the stock dividend.Dec. 1Declared a $0.30 per share dividend to stockholders of record on December 15, payable January 5, 2023.31Determined that net income for the year was $375,000.Enter the beginning balances, and post the entries to the stockholders' equity accounts. (Use T-accounts.) (Note: Open additionalstockholders' equity accounts as needed.) (Post entries in the order of journal entries presented in the previous part. Select the date forclosing balances even in case of zero balance.)Common StockDec. 31Retained EarningsPaid-in Capital in Excess of Par-CommonCommon Stock Dividends DistributableCash DividendsStock Dividends

A Journal entry is a primary entry that records the financial transactions initially. The…

On January 1, 2022, Pharoah Company had the following stockholders' equity accounts. Common Stock ($20 par value, 58,700 shares issued and outstanding) $1,174,000 Paid-in Capital in Excess of Par-Common Stock 196,000 Retained Earnings 555,000

On January 1, 2022, Pharoah Company had the following stockholders' equity accounts. Common Stock ($20 par value, 58,700 shares issued and outstanding) $1,174,000 Paid-in Capital in Excess of Par-Common Stock 196,000 Retained Earnings 555,000

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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