Question

Problem 11-8A (Part Level Submission) On January 1, 2017, Culver Corporation had these stockholders’ equity accounts. Common Stock ($10 par value, 81,500 shares issued and outstanding) $815,000 Paid-in Capital in Excess of Par Value 483,000 Retained Earnings 620,000 During the year, the following transactions occurred. Jan. 15 Declared a $0.70 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $14 per share. May 15 Issued the shares for the stock dividend. Dec. 1 Declared a $0.70 per share cash dividend to stockholders of record on December 15, payable January 10, 2018. Dec. 31 Determined that net income for the year was $353,000. (a) Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement. 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.) Date Account Titles and Explanation Debit Credit choose a transaction date Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 enter an account title to close net income enter a debit amount enter a credit amount enter an account title to close net income enter a debit amount enter a credit amount (To close net income) choose a transaction date Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 enter an account title to close stock dividends enter a debit amount enter a credit amount enter an account title to close stock dividends enter a debit amount enter a credit amount (To close stock dividends) choose a transaction date Jan. 15Feb. 15Apr. 15May 15Dec. 1Dec. 31 enter an account title to close cash dividends enter a debit amount enter a credit amount enter an account title to close cash dividends enter a debit amount enter a credit amount (To close cash dividends)

Answer 1

Journal Entry- Culver Corporation
Date	Account Titles and Explanation	Debit	Credit
15-Jan	Retained Earning (81500*0.70)	$57,050.00
	Dividends payable		$57,050.00
	( record declaration of dividends)
15-Feb	Dividends payable	$57,050.00
	Cash		$57,050.00
	( record payment of dividends)
15-Apr	Retained Earning ( 81500*10%*14)	$114,100.00
	Common Stock Dividend Distributable (81500*10%*10)		$81,500.00
	Paid in Capital in Excess of par Value		$32,600.00
	( record declaration of Stock ividends)
15-May	Common Stock Dividend Distributable (81500*10%*10)	$81,500.00
	Common Stock		$81,500.00
	( record issue of Share agaisnt stock dividend)
1-Dec	Retained Earning (81500+ 8150)*0.70	$62,755.00
	Dividends payable		$62,755.00
	( record declaration of dividends)
Dec. 31	Income summary	$353,000.00
	Retained earnings		$353,000.00
	( close income summary retained earnings)