Problem 11-4A (Part Level Submission) On January 1, 2015, Geffrey Corporation ha

Question

Problem 11-4A (Part Level Submission) On January 1, 2015, Geffrey Corporation had the following stockholders' equity accounts. Common Stock ($24 par value, 54,000 shares issued and outstanding) 1,296,000 Paid-in Capital in Excess of Par-Common Stock Retained Earnings 195,700 557,900 During the year, the following transactions occurred. Feb. 1 Mar. 1 Apr. 1 July 1 Declared a $2 cash dividend per share to stockholders of record on February 15, payable March 1. Paid the dividend declared in February. Announced a 2-for-1 stock split. Prior to the split, the market price per share was $38. Declared a 13% 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. Issued the shares for the stock dividend. 31 Dec. 1 Declared a $0.40 per share dividend to stockholders of record on December 15, payable January 5, 2016 31 Determined that net income for the year was $343,000. ournalize 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.) Date Account Titles and Explanation Debit Credit Feb. 1 83 Mar. 1

Explanation / Answer

Date Account titles & Explanations Debit Credit 1-Feb Cash dividend 108000 dividends payable (54000*2) 108,000 1-Mar Dividends payable 108000 Cash 108000 1-Apr no entry (108,000 shares at $12 per share) 1-Jul Stock dividend (14040*38) 533520 Stock dividend distributable (14,040*12) 168480 paid in capital in excess of par -CS 365040 31-Jul Stock dividend distributable 168480 common stock 168480 1-Dec Cash dividend 48816 dividends payable (108000*113%)*.4 48816 31-Dec income summary 343,000 retained earnings 343,000

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