Question

Problem 11-4A (Part Level Submission)

On January 1, 2019, Geffrey Corporation had the following stockholders’ equity accounts.

Common Stock ($20 par value, 60,000 shares issued and outstanding)		$1,200,000
Paid-in Capital in Excess of Par—Common Stock		200,000
Retained Earnings		600,000

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 $36.
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 $13 per share.
31		Issued the shares for the stock dividend.
Dec. 1		Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2020.
31		Determined that netnincome for the year was $350,000.

Enter the beginning balances, and post the entries to the stockholders’ equity accounts. (Use T-accounts.) (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.)

Answer 1

Common Stock							Date	Account Titles and Explanation	Debit	Credit
Date	Explantion	Ref	Debit	Credit	Balance		Feb 1	Cash Dividends	60,000
Jan 1	Balance	ü			1,200,000			Dividends Payable		60,000
July 31	Adjusting			120,000	1,320,000
							Mar 1	Dividends Payable	60,000
Common Stock Dividends Distributable								Cash		60,000
Date	Explantion	Ref	Debit	Credit	Balance
July 1				120,000	120,000		Apr 1	No Entry
July 31			120,000					No Entry		0
Paid-in Capital in Excess of Par—Common Stock							July 1	Stock Dividends (60000 x 2 x 10% x $13)	156,000
Date	Explantion	Ref	Debit	Credit	Balance			Paid-in Capital in Exces		36,000
Jan 1	Balance	ü			200,000			Common Stock Dividend		120,000
July 1				36,000	236,000
							July 31	Common Stock Dividends	120,000
Retained Earnings								Common Stock		120,000
Date	Explantion	Ref	Debit	Credit	Balance
Jan 1	Balance	ü			600,000		Dec 1	Cash Dividends(6000 x 2 *110%*$0.50)	66,000
Dec 31	Net Income			350,000	950,000			Dividends Payable		66,000
Dec 31	Stock dividend		156,000		794,000
Dec 31	Cash dividend		126,000		668,000		Dec 31	Income Summary	350,000
								Retained Earnings		350,000
Cash Dividends								(To close net income)
Date	Explantion	Ref	Debit	Credit	Balance
Feb 1			60,000		60,000		Dec 31	Retained Earnings	156,000
Dec 1			66,000		126,000			Stock Dividends		156,000
Dec 31				126,000				(To close stock dividends)
Stock Dividends							Dec 31	Retained Earnings	126,000
Date	Explantion	Ref	Debit	Credit	Balance			Cash Dividends		126,000
July 1			156,000		156,000			(To close cash dividends)
Dec 31				156,000