Question

On January 1, 2020, Blossom Corporation had the following stockholders’ equity accounts. Common Stock ($20 par...

On January 1, 2020, Blossom Corporation had the following stockholders’ equity accounts.
Common Stock ($20 par value, 50,000 shares issued and outstanding) $1,000,000
Paid-in Capital in Excess of Par—Common Stock 190,000
Retained Earnings 550,000

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 $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 $14 per share.
31 Issued the shares for the stock dividend.
Dec. 1 Declared a $0.30 per share dividend to stockholders of record on December 15, payable January 5, 2021.
31 Determined that net income for the year was $300,000.

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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.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1Jan. 5Feb. 1Mar. 1Apr.1July 1July 31Dec. 1Dec. 31

Jan. 1Jan. 5Feb. 1Mar. 1Apr.1July 1July 31Dec. 1Dec. 31

Jan. 1Jan. 5Feb. 1Mar. 1Apr.1July 1July 31Dec. 1Dec. 31

Jan. 1Jan. 5Feb. 1Mar. 1Apr.1July 1July 31Dec. 1Dec. 31

Jan. 1Jan. 5Feb. 1Mar. 1Apr.1July 1July 31Dec. 1Dec. 31

Jan. 1Jan. 5Feb. 1Mar. 1Apr.1July 1July 31Dec. 1Dec. 31

Jan. 1Jan. 5Feb. 1Mar. 1Apr.1July 1July 31Dec. 1Dec. 31

(To close net income)

Jan. 1Jan. 5Feb. 1Mar. 1Apr.1July 1July 31Dec. 1Dec. 31

(To close stock dividends)

Jan. 1Jan. 5Feb. 1Mar. 1Apr.1July 1July 31Dec. 1Dec. 31

(To close cash dividends)

0 0
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Answer #1

From the desk of DATE Date Febl Mara Retained earnings $50000 - Dividend payable $50000 C&2 x 50000 shases) Dunidend pay ableJuly3] Dluidend payable 870000 APIC- US $30000 Common stock $100000 Deca Dee 31 Retained eamings $16500 Dividend payable $165

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