On January 1, 2017, Belgium Industries SA had the following equity accounts. Share Capital-Ordinary (4 par...

 

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On January 1, 2017, Belgium Industries SA had the following equity accounts. Share Capital-Ordinary (€4 par value, 250,000 shares issued and outstanding) Share Premium-Ordinary Retained Earnings €1,000,000 200,000 840,000 During the year, the following transactions occurred. Declared a €1 cash dividend per share to shareholders of record on January 31, payable February 15. Paid the dividend declared in January. Declared a 10% share dividend to shareholders of record on April 30, distributable May 15. On April 15, the market price was €11 per share. Jan. 15 Feb. 15 Apr. 15 May 15 Issued the shares for the share dividend. July 1 Announced a 2-for-1 share split. The market price per share prior to the announcement was €12. (The new par value is €2.) Declared a €0.50 per share cash dividend to shareholders of record on December 15, payable January 10, 2018. 31 Dec. 1 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 equity accounts. (Note: Open additional equity accounts as needed.) (c) Prepare an equity section at December 31. On January 1, 2017, Belgium Industries SA had the following equity accounts. Share Capital-Ordinary (€4 par value, 250,000 shares issued and outstanding) Share Premium-Ordinary Retained Earnings €1,000,000 200,000 840,000 During the year, the following transactions occurred. Declared a €1 cash dividend per share to shareholders of record on January 31, payable February 15. Paid the dividend declared in January. Declared a 10% share dividend to shareholders of record on April 30, distributable May 15. On April 15, the market price was €11 per share. Jan. 15 Feb. 15 Apr. 15 May 15 Issued the shares for the share dividend. July 1 Announced a 2-for-1 share split. The market price per share prior to the announcement was €12. (The new par value is €2.) Declared a €0.50 per share cash dividend to shareholders of record on December 15, payable January 10, 2018. 31 Dec. 1 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 equity accounts. (Note: Open additional equity accounts as needed.) (c) Prepare an equity section at December 31.