Problem 14-01A a-c (Part Level Submission) (Video)

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

Common Stock ($20 par value, 63,500 shares issued and outstanding)		$1,270,000
Paid-in Capital in Excess of ParCommon Stock		197,000
Retained Earnings		564,000

During the year, the following transactions occurred.

Feb. 1		Declared a $2 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 $38.
July 1		Declared a 15% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $15 per share.
31		Issued the shares for the stock dividend.
Dec. 1		Declared a $0.60 per share dividend to stockholders of record on December 15, payable January 5, 2021.
31		Determined that net income for the year was $300,500.

(b) Enter the beginning balances, and post the entries to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.) (Post entries in the order of journal entries presented in the previous part.) Common Stock Date Explanation Ref Debit Credit Balance Balance Common Stock Dividends Distributable Date Explanation Ref Debit Credit Balance Paid-in Capital in Excess of Par Common Stock Date Explanation Ref Debit Balance Credit Balance Retained Earnings Date Explanation Ref Debit Credit Balance Balance Net income Stock dividend Cash dividend Cash Dividends Date Explanation Ref Debit Credit Balance Stock Dividends Date Explanation Ref Debit Credit Balance