Problem 11-4A On January 1, 2017, Geffrey Corporation ha Common Stock ($26 par v
ID: 2561664 • Letter: P
Question
Problem 11-4A On January 1, 2017, Geffrey Corporation ha Common Stock ($26 par value, 55,500 shares issued and outstanding) Paid-in Capital in Excess of Par-Common Stock Retained Earnings $1,443,000 202,000 637,000 During the year, the following transactions occurred Feb. 1 Declared a $3 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. 1 Paid the dividend declared in February July 1 Declared a 10% stock dividend to stockholders of record on Dec. 1 Declared a s0.30 per share dividend to stockholders of record on December 15, payable January 5, 2018. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $35. 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. 31 Determined that net income for the year was $361,500. ournalize the transactions and the closing entries for net income and dividends. (Credit account titles are automatically indented when smount is entered. Do manually. problem.) not inde If no entry is required, select "No Entry" for the account titles ond enter O for the amounts. Record journal entries in the order presented in the Date Account Titles and Explanation Debit CreditExplanation / Answer
Journal
Common stock
Common stock dividend distributable
Paid in capital in excess of par-common stock
Retained earnings
Cash dividends
Stock dividends
Balance sheet (Partial)
Date Account Name Debit Credit Feb 1 Cash dividends ($3 x 55500) $166500 Dividends payable $166500 Mar 1 Dividends payable 166500 Cash 166500 Apr 1 No entry. Now the no. of shares outstanding = 55500 x 2 = 111000 July 1 Stock dividend ($15 x 111000 x 10%) 166500 Common stock dividend distributable ($13 x 111000 x 10%) 144300 Paid in capital in excess of par-common stock ($2 x 111000 x 10%) 22200 July 31 Common stock dividend distributable 144300 Common stock 144300 Dec 1 Cash dividends (122100 x $0.30) 36630 Dividends payable 36630 Dec 31 Income summary 361500 Retained earnings 361500 (To close net income) Dec 31 Retained earnings 166500 Stock dividends 166500 (To close stock dividends) Dec 31 Retained earnings 203130 Cash dividends 203130 (To close cash dividends)