On December 31, 2020, Cullumber Corporation had the following shareholders’ equity accounts:

CULLUMBER CORPORATION Balance Sheet (partial) December 31, 2020
Shareholders’ equity
Common shares (unlimited number of shares authorized, 86,000 issued)		$1,156,000
Retained earnings		560,000
Total shareholders’ equity		$1,716,000

During the year, the following transactions occurred:

Jan.		15		Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15.
July		1		Announced a 3-for-2 stock split. The market price per share on the date of the announcement was $12.
Dec.		15		Declared a 10% stock dividend to shareholders of record on December 30, distributable on January 15. On December 15, the market price of each share was $8; on December 30, $11; and on January 15, $10.
		31		Determined that profit before income tax for the year was $462,000. The company has a 35% income tax rate.

Journalize the transactions and closing entries for 2021. (Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem.)

Enter the beginning balances from the December 31, 2020, partial balance sheet. Post the entries in part (a) to the shareholders’ equity accounts. (Note: Open additional shareholders' equity accounts as needed.)

Prepare the shareholders’ equity section of the balance sheet at December 31, 2021.

Answer rating: 100% (QA)

Requirement 1 Date Jan15 Jan31 Feb15 Jul01 Dec15 Dec30 Cash dividend 860001 Cash Dividend ... View the full answer