On January 1, 2020, Geffrey Corporation had the following stockholders’ equity accounts.

Common Stock ($20 par value, 60,000 shares issued and outstanding) ............................ $1,200,000
Paid-in Capital in Excess of Par—Common Stock ..................................................................      200,000
Retained Earnings ......................................................................................................................     600,000

During the year, the following transactions occurred.

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

Mar. 1 Paid the dividend declared in February.

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

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

31 Issued the shares for the stock dividend.

Dec. 1 Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2021.

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 stockholders’ equity accounts. (Use T-accounts.) Open additional stockholders’ equity accounts as needed.

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