Question

Problem 14-01A a-c (Video)

On January 1, 2020, 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 5,2021 .

come for the year was $ 350,000.

Answer 1

Prepare journal entries as follows:

Prepare T-Accounts as follows:

Cash Dividends
Date	Explanation	Ref.	Debit	Credit	Balance
Feb. 01	Dividends payable		$60,000		$60,000
Dec. 01	Dividends payable		$66,000		$126,000
Dec. 31	Retained Earnings			$126,000	$0
Stock Dividends
Date	Explanation	Ref.	Debit	Credit	Balance
Jul. 01	Common stock dividends distributable		$120,000		$120,000
Jul. 01	Paid-in capital in excess of par-common stock		$36,000		$156,000
Dec. 31	Retained Earnings			$156,000	$0