On January 1, 2011, Belgium Corporation had the following equity accounts. Share CapitalOrdinary (20 par value, 75,000

Question:

On January 1, 2011, Belgium Corporation had the following equity accounts.

Share Capital—Ordinary (€20 par value, 75,000

shares issued and outstanding) ........ €1,500,000

Share Premium-Ordinary ............ 200,000

Retained Earnings .............. 600,000

During the year, the following transactions occurred.

Feb. 1 Declared a €1 cash dividend per share to shareholders of record on February 15, payable March 1.

Mar. 1 Paid the dividend declared in February.

Apr. 1 Announced a 2-for-i share split. Prior to the split, the market price per share was €36.

July 1 Declared a 10% share dividend to shareholders of record on July 15, distributable July 31. On July 1, the market price was €13 per share.

31 Issued the shares for the share dividend.

Dec. 1 Declared a €0.50 per share dividend to shareholders of record on December 15, payable January 5, 2012.

31 Determined that net income for the year was €350,000.

Instructions

(a) Journalize the transactions and the closing entries for net income and dividends.

(b) Enter the beginning balances, and post the entries to the equity accounts.

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