Problem 14-1A (Part Level Submission) On January 1, 2017, Geffrey Corporation ha
ID: 2512904 • Letter: P
Question
Problem 14-1A (Part Level Submission) On January 1, 2017, Geffrey Corporation had the following stockholders' equity accounts. Common Stock ($24 par value, 64,000 shares issued and outstanding) Paid-in Capital in Excess of Par-Common Stock Retained Earnings $1,536,000 204,000 574,000 During the year, the following transactions occurred Feb. 1 Declared a $3 cash dividend per share to stockholders of record on February 15, payable March1 Mar. 1 Paid the dividend declared in February. Apr. Announced a 2-for-1 stock split. Prior to the split, the market price per share was $38. July 1 Declared a 10% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $15 per share. 31 Issued the shares for the stock dividend Declared a $o.50 per share dividend to stockholders of record on December 15, payable January 5, 2018. Determined that net income for the year was $318,500. Dec. 1 31 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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Feb. 1 Cash Dividends 192,000Explanation / Answer
Answer
Date
General Journal
Debit (in $)
Credit (in $)
Working [if required]
Feb-01
Cash dividends
192000
[$3 x 64000 shares]
Dividends payable
192000
Mar-01
Dividends payable
192000
Cash
192000
Apr-01
No entry
[no. of shares 64000 x 2 = 128000 at $12 par]
Jul-01
Stock dividends
192000
[128000 shares x 10% x $15 per share] [par value $12]
Common Stock dividends distributable
153600
[12800 shares x $12]
Paid in capital in excess of par common stock
38400
[12800 shares x $3]
Jul-31
Common Stock dividends distributable
153600
Common Stock
153600
Dec-01
Cash dividends
70400
[128000+12800 shares x $0.5]
Dividends payable
70400
Dec-31
Income Summary
318500
Retained Earnings
318500
Dec-31
Retained Earnings
192000
Stock dividends
192000
Dec-31
Retained Earnings
262400
[192000 Feb 1 + 70400 Dec 1]
Cash dividends
262400
Date
General Journal
Debit (in $)
Credit (in $)
Working [if required]
Feb-01
Cash dividends
192000
[$3 x 64000 shares]
Dividends payable
192000
Mar-01
Dividends payable
192000
Cash
192000
Apr-01
No entry
[no. of shares 64000 x 2 = 128000 at $12 par]
Jul-01
Stock dividends
192000
[128000 shares x 10% x $15 per share] [par value $12]
Common Stock dividends distributable
153600
[12800 shares x $12]
Paid in capital in excess of par common stock
38400
[12800 shares x $3]
Jul-31
Common Stock dividends distributable
153600
Common Stock
153600
Dec-01
Cash dividends
70400
[128000+12800 shares x $0.5]
Dividends payable
70400
Dec-31
Income Summary
318500
Retained Earnings
318500
Dec-31
Retained Earnings
192000
Stock dividends
192000
Dec-31
Retained Earnings
262400
[192000 Feb 1 + 70400 Dec 1]
Cash dividends
262400