Common Stock $($$$20$ par value, $50,000$ shares issued and outstanding$)$

Paid$-$in Capital in Excess of Par$-$Common Stock

Retained Earnings

On January $1,2022,$ Cullumber Company had the following stockholders' equity accounts.

During the year, the following transactions occurred.

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

Paid the dividend declared in February.

Announced a $2-$for$-1$ stock split. Prior to the split, the market price per share was $$35.$

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 $$14$ per share.

Issued the shares for the stock dividend.

Declared a $$0\mathrm{.}30$ per share dividend to stockholders of record on December $15,$ payable January $5,2023.$

Determined that net income for the year was $$300,000.$

$($a$)$ Journalize the transactions and the closing entries for net income and dividends. $($Record journal entries in the order presented in the

problem. 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 O for the amounts.$)$On January $1,2022,$ Cullumber Company had the following stockholders' equity accounts.

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 $$35.$

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 $$14$ per share.

$31$ Issued the shares for the stock dividend.

Dec. $1$ Declared a $$0\mathrm{.}30$ per share dividend to stockholders of record on December $15,$ payable January $5,2023.$

$31$ Determined that net income for the year was $$300,000.$

$($$\mathrm{b)}$ Journalize the transactions and the closing entries for net income and dividends. $($Record journal entries in the order presented in the

problem. 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.$)$

 

 

Transcribed Image Text:

Enter the beginning balances, and post the entries to the stockholders' equity accounts. (Use T-accounts.) (Note: Open additional stockholders' equity accounts as needed.) (Post entries in the order of journal entries presented in the previous part. Select the date for closing balances even in case of zero balance.) Common Stock July 31 186000 Dec. 31 Bal. 186000 Dec. 31 Dec. 31 Dec. 31 Bal. Julv 1 July 1 Julv 31 186000 Dec. 31 Bal. 186000 Retained Earnings 279000 Dec. 31 386000 195300 Dec. 31 386000 Paid-in Capital in Excess of Par-Common Stock -93000 July 1 Common Stock Dividends Distributable 186000 July 1 195300 -93000 186000 i Enter the beginning balances, and post the entries to the stockholders' equity accounts. (Use T-accounts.) (Note: Open additional stockholders' equity accounts as needed.) (Post entries in the order of journal entries presented in the previous part. Select the date for closing balances even in case of zero balance.) Common Stock July 31 186000 Dec. 31 Bal. 186000 Dec. 31 Dec. 31 Dec. 31 Bal. Julv 1 July 1 Julv 31 186000 Dec. 31 Bal. 186000 Retained Earnings 279000 Dec. 31 386000 195300 Dec. 31 386000 Paid-in Capital in Excess of Par-Common Stock -93000 July 1 Common Stock Dividends Distributable 186000 July 1 195300 -93000 186000 i

Answer rating: 100% (QA)

a Here are the journal entries for the transactions and closing entries Jan 1 ... View the full answer