On January 1, 2014, Dixon Corporation had the following stockholders’ equity accounts. Common Stock ($4 par value, 250,000 shares issued and outstanding) .....$1,000,000 Paid-in Capital in Excess of Par—Common Stock .................. 200,000 Retained Earnings .............................. 840,000 During the year, the following transactions occurred. Jan. 15 Declared a $1 cash dividend per share to stockholders of record on January 31, payable

Chapter 11, Problem Set B #4

On January 1, 2014, Dixon Corporation had the following stockholders’ equity accounts.

Common Stock ($4 par value, 250,000 shares issued and outstanding) .....$1,000,000

Paid-in Capital in Excess of Par—Common Stock .................. 200,000

Retained Earnings .............................. 840,000

During the year, the following transactions occurred.

Jan. 15 Declared a $1 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 $11 per share.

May 15 Issued the shares for the stock dividend.

July 1 Announced a 2-for-1 stock split. The market price per share prior to the announcement was $12. (The new par value is $2.00.)

Dec. 1 Declared a $0.50 per share cash dividend to stockholders of record on December 15, payable January 10, 2015.

31 Determined that net income for the year was $264,000.


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 stockholders’ equity accounts.

(c) Prepare a stockholders’ equity section at December 31.


Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...

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Related Book For answer-question

Financial and managerial accounting

1st edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

ISBN: 978-1118016114

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