Can someone please help me correct the entries in BOLD type. I have tried and ca
ID: 2483336 • Letter: C
Question
Can someone please help me correct the entries in BOLD type. I have tried and can't figure it out. Thank you
Problem 14-1A (Part level Submission)
On January 1, 2014, Geffrey Corporation had the following stockholders’ equity accounts. Common Stock ($24 par value, 66,000 shares issued and outstanding) $1,584,000
Paid-in Capital in Excess of Par—Common Stock 190,600
Retained Earnings 621,900
During the year, the following transactions occurred.
Feb. 1 Declared a $2 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 2-for-1 stock split. Prior to the split, the market price per share was $36.
July 1 Declared a 11% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share.
31 Issued the shares for the stock dividend.
Dec. 1 Declared a $0.60 per share dividend to stockholders of record on December 15, payable January 5, 2015.
31 Determined that net income for the year was $324,000.
Collapse question part (a) Partially correct answer. Your answer is partially correct. Try again.
Journalize the transactions and the closing entries for net income and dividends. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit
Feb. 1 Entry field with correct answer Cash Dividends Entry field with correct answer 132000 Entry field with correct answer Entry field with correct answer Dividends Payable Entry field with correct answer Entry field with correct answer 132000
Mar. 1 Entry field with correct answer Dividends Payable Entry field with correct answer 132000 Entry field with correct answer Entry field with correct answer Cash Entry field with correct answer Entry field with correct answer 132000
Apr. 1 Entry field with correct answer No Entry Entry field with correct answer Entry field with correct answer Entry field with correct answer No Entry Entry field with correct answer Entry field with correct answer
July 1 Entry field with correct answer Stock Dividends Entry field with incorrect answer 406560 Entry field with correct answer Entry field with correct answer Common Stock Dividends Distributable Entry field with correct answer Entry field with incorrect answer 290400 Entry field with correct answer Paid-in Capital in Excess of Par-Common Stock Entry field with correct answer Entry field with incorrect answer 116160
July 31 Entry field with correct answer Common Stock Dividends Distributable Entry field with incorrect answer 264000 Entry field with correct answer Entry field with correct answer Common Stock Entry field with correct answer Entry field with incorrect answer 264000
Dec. 1 Entry field with correct answer Cash Dividends Entry field with incorrect answer 158400 Entry field with correct answer Entry field with correct answer Dividends Payable Entry field with correct answer Entry field with incorrect answer 158400
Dec. 31 Entry field with correct answer Income Summary Entry field with correct answer 324000 Entry field with correct answer Entry field with correct answer Retained Earnings Entry field with correct answer Entry field with correct answer 324000 (To close net income)
Entry field with correct answer Retained Earnings Entry field with incorrect answer 406560 Entry field with correct answer Entry field with correct answer Stock Dividends Entry field with correct answer Entry field with incorrect answer 406560 (To close stock dividends)
Entry field with correct answer Retained Earnings Entry field with incorrect answer 290400 Entry field with correct answer Entry field with correct answer Cash Dividends Entry field with correct answer Entry field with incorrect answer 290400 (To close cash dividends)
Explanation / Answer
Feb. 1 Declared a $2 cash dividend per share to stockholders of record on February 15, payable March 1
Dr Cash Dividend* $132,000 (66,000 x $2)
Cr Dividend payable $132,000
Mar. 1 Paid the dividend declared in February.
Dr Dividend payable $132,000
Cr Cash $132,000
Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $36
No entry is required for a stock split, but it should be noted that the no. of shares issued and outstanding is now 66,000 x 2 = 132,000, and the par value is now $12
July 1 Declared a 11% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share.
Dr Stock dividend* $203,280 (132,000 x 11% x $14)
Cr Common Stock Dividend Distributable $174,240 (132,000 x 11% x $12 par)
Cr Paid-in Capital in Excess of Par Value $29,040
July 31 Issued the shares for the stock dividend
Dr Common Stock Dividend Distributable $132,000
Cr Common stock $132,000
(The no. of common shares issued and outstanding is now 146,520, i.e., 132,000 plus 11%)
Dec. 1 Declared a $0.60 per share dividend to stockholders of record on December 15, payable January 5, 2015.
Dr Cash dividend* $93,720 (146,520 x $0.60)
Cr Dividend payable $93,720
Dec 31 Determined that net income for the year was $324,000
Dr Income summary $324,000
Cr Retained earnings $324,000