Problem 11-8A (Part Level Submission) On January 1, 2017, Culver Corporation had

Question

Problem 11-8A (Part Level Submission) On January 1, 2017, Culver Corporation had these stockholders' equity accounts. Common Stock ($10 par value, 81,500 shares issued and outstanding) Paid-in Capital in Excess of Par Value Retained Earnings $815,000 483,000 620,000 During the year, the following transactions occurred Jan. 15 Declared a $0.70 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15, On April 15, the market price of the stock was $14 per share. May 15 Issued the shares for the stock dividend. Dec. 1 Declared a s0.70 per share cash dividend to stockholders of record on December 15, payable January 10, 2018. Dec. 31 Determined that net income for the year was $353,000 (a) Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement. 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.) Date Account Titles and Explanation Debit Credit

Explanation / Answer

Journal entries Date Accounting titles & explnations Debit Credit 15-Jan cash div 57050 dividends payable (81,500*.70) 57,050 15-Feb Dividends payable 57,050 cash 57,050 apirl 15 Stock dividend(8150*14) 114100 common stock div distrbutable 81,500 paid in capital in excess of par 326000 15-May common stock div distributable 81,500 common stock . 81,500 1-Dec cash dividend 62755 dividends payable (81500+8150)*.7 62,755 31-Dec income summary 353,000 retained earnings 353,000 31-Dec Retained earnings 233,905 cash dividend 119805 stock dividen 114,100

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