Question

Un January 1, 2020, Pina Colada Corp. had the following stockholders' equity accounts Common Stock ($24 par value, 59,000 shares issued and outstanding) $1,416,000 Paid-in Capital in Excess of Par-Common Stock 197,000 Retained Earnings 559,000 During the year, the following transactions occurred. Declared a $3 cash dividend per share to stockholders of record on February 15, payable March 1 Mar. " Paid the dividend declared in February Athird Apr. Announced a 2-for-1 stock split. Prior to the split, the market price per share was $39. Jul Declared a 15% 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 Declar 31 Issued the shares for the stock dividend. Dec Decla Declared a $0.60 per share dividend to stockholders of record on December 15, payable January 5, 2021. 31 Determined that net income for the year was $332,500. 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 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Answer 1

Jowinal Entries Debit Credit Date 177000 Feb 1 Account Cash Dividends - Dividends Payable 177000 177ooo Mar 1 Dividends Payable. 177000 Apr 1 No Entry No. of shares 59000x2 = 118000 July 1 Stock Dividend 247800 Common Stock Dividends 212400 - Distributed Paid up Capital (Excess) 35400 Q1Q400 31 July Common Stock Dividend. Distributed Common Stock. 212400 I Dec Retained 128620 Earnings Dividends payable 128620 31 Dec Income Summary Retained Earnings 332500 32500

Comomon Stock Amount Date / 1 Jan I Amon 1416000 2124100 Particulars Balance Common Stock Date particulars 1628400 1628400 [1698400 31 Dec Balance Amount 559000 | 33250D Retained Earnings Date Particulars Amount Date Particulars 1 Jan Balance Feb Cash Dividend 177000 31 Dec Net Income July Stock Dividend 247800 I Dec Cash Dividend [128620 - 31 Dec Balance 378080 1931500 932500 - Paid in Particulars Date Capital in excess of Par value. l'Amont Date particulars Amaut 1 1 Jan Balance 197000 11 July Stock Dividend 35400 232400 232400 232400 31 Dec Balance Common Stock Dividends Distributable Particulars Amount Date Particulars Date Amount 31 July Common Stock 212400 1 July Stock Dividend 212400 212400 212400

du . Date Date Particulars - ulars Cash Dividends Amount Date Amount Date Particulars | Amount 1 Feb 777000 | Dividends Payable 177000 31 Dec Dividends Payable Balance 177000 197000 Date 1 July Stock Dividends Amount Date particulars is part Amount - - Particulars Amount Date Common Stock 212400 Dividend Distributed Paid up capital 35400 31 Dec July Balance 247800 (Excess) 247800 1247800 Pina Colada Corporation. - Balance Sheet 31 December 2010 Particulars Amount Shareholder's Equity Paid in Capital. Common stock (12x 135700) 1628400 232400 Additional Paid In Capital in excess of par value TOTAL PAID IN CAPITAL Earnings TOTAL SHAREHOLDER Equity Retained 1860800 378080 2238880