Question

On January 1, 2020, Carla Vista Corporation had the following stockholders’ equity accounts.

Common Stock ($26 par value, 59,500 shares issued and outstanding)		$1,547,000
Paid-in Capital in Excess of Par—Common Stock		191,000
Retained Earnings		564,000

During the year, the following transactions occurred.

Feb. 1		Declared a $3 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 $35.
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 $15 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, 2021.
31		Determined that net income for the year was $308,000.

Journalize the transactions and the closing entries for net income and dividends. (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. Record journal entries in the order presented in the problem.)

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
Common Stock Dividends Distributable
Date	Explanation		Ref	Debit	Credit	Balance
choose a transaction date
Paid-in Capital in Excess of Par—Common Stock

Date	Explanation	Ref	Debit	Credit	Balance
Date		√
Date
Retained Earnings
Date	Explanation	Ref	Debit	Credit	Balance
Date		√
Date
Date
Date
Cash Dividends

Date	Explanation	Ref	Debit	Credit	Balance
Date
Date
Date
Stock Dividends
Date	Explanation	Ref	Debit	Credit	Balance
Date
Date

Prepare a stockholders’ equity section at December 31.(Enter account name only and do not provide descriptive information.)

CARLA VISTA CORPORATION Balance Sheet (Partial) choose the accounting period Date
select an opening section name
select an opening subsection name
select a name of subordinate part one of this subsection
enter a balance sheet item			$enter a dollar amount
select a name of subordinate part two of this subsection
enter a balance sheet item			enter a dollar amount
select a closing subsection name			enter a total of the two previous amounts
enter a balance sheet item			enter a dollar amount
select a closing section name			$enter a total amount for this section

Answer 1

Date	Account titles & Explanations					Debit	Credit
1-Feb	Cash dividend					178,500
	dividends payable		(59500*3)				178,500
1-Mar	Dividends payable					178500
	Cash						178500
1-Apr	no entry	(119,000 shares at $13 par value)
1-Jul	Stock dividend		(11900*15)			178500
	Stock dividend distributable			(11900*13)			154,700
	paid in capital in excess of par -CS						23800
	(119,000*10%=11900 shares)
31-Jul	Stock dividend distributable					154700
	common stock						154700
1-Dec	Cash dividend					59500
	dividends payable						59500
	(130900*.5)
31-Dec	income summary					308,000
	retained earnings						308,000
31-Dec	retained earnings					178,500
	Stock dividend						178,500
31-Dec	Retained earnings					238,000
	cash dividend						238,000
b)
	Common stock
	Date	Explanation	Ref	Debit	Credit	Balance
	1-Jan	Bal				1,547,000
	31-Jul				154700	1,701,700
	Common stock dividend distributable
	Date	Explanation	Ref	Debit	Credit	Balance
	1-Jul				154,700	154,700
	31-Jul			154700		0
	Paid in capital in excess of par value
	Date	Explanation	Ref	Debit	Credit	Balance
	1-Jan	Bal				191,000
	1-Jul				23800	214,800
	Retained earnings
	Date	Explanation	Ref	Debit	Credit	Balance
	1-Jan	Bal				564,000
	31-Dec				308,000	872,000
	31-Dec			178,500		693,500
	31-Dec			238,000		455,500

Cash Dividend
Date	Explanation	Ref	Debit	Credit	Balance
1-Jan	Bal				0
1-Feb			178,500		178,500
1-Dec			59500		238,000
Stock Dividend
Date	Explanation	Ref	Debit	Credit	Balance
1-Jan	Bal				0
1-Jul			178,500		178,500

	Balance sheet (Partial)
Stockholder's Equity
Paid in capital
Capital stock
Common stock ,$12 par value ,140800 shares issued
and outstanding					1,701,700
Addittional paid in capital
in excess of par value					214,800
Total paid in capital					1,916,500
Retained earnings					455,500
Total stockholder's Equity					2,372,000