Question

On January 1, 2015, Geffrey Corporation had the following stockholders’ equity accounts.

Common Stock ($20 par value, 61,000 shares issued and outstanding)		$1,220,000
Paid-in Capital in Excess of Par—Common Stock		205,600
Retained Earnings		593,200

During the year, the following transactions occurred.

Feb. 1		Declared a $2 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 $39.
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, 2016.
31		Determined that net income for the year was $321,000.

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 Debit Date Balance 1220000 Adjusting 122000 1342000 Debit 122000 122000 122000 Paid-in Capital in Excess of Stock Ref Debit 122000 122000 y1Balance 122000 Retained Earnings Debit Date Balance 593200 Net income 321000 914200 Dec. 31 Stock dividend 101260 812940 Cash dividend 170800 642140 Debit 61000 61000 40260 101260 101260 Stock Dividends Debit

Answer 1

answer
Common stock
Date	Explantion	Ref	Dr	Cr	Balance
Jan 1 Bal	Balance				$1,220,000
31-Jul				122000	$1,342,000
Common stock dividend distributable
Date	Explantion	Ref	Dr	Cr	Balance
1-Jul				170800	170800
31-Jul			170800		0
Paid-in Capital in Excess of Par—Common Stock
Date	Explantion	Ref	Dr	Cr	Balance
Jan 1 Bal	Balance				205600
31-Jul				48800	$254,400
Retained Earnings
Date	Explantion	Ref	Dr	Cr	Balance
Jan 1 Bal	Balance				593200
1-Feb	Cash Dividend		122000		471200
1-Jul	Stock dividend		170800		300400
1-Dec	Cash Dividend		40260		260140
31-Dec	net Income			122000	382140
	Balance Sheet
	31-Dec
	Stockholder equity
	Paid In capital
	Capital stock
	Common stock, $10 par value, 134200 sharess issued and outstanding	$1,342,000
	Additional paid in capital
	Paid-in Capital in Excess of Par—Common Stock	$254,400
	Total paid in capital	$1,596,400
	Retained Earnings	382140
	Total stockholder equity	$1,978,540
	If any doubt please comment

working
Date	Accounts Title	Dr	Cr
1-Feb	Retained Earnings	122000
	Dividend payable		122000
1-Mar	Dividend payable	122000
	Cash		122000
1-Apr	No entry required
	shares are now 61000*2	122000
	Par value	$10
1-Jul	Retained Earnings (122000*14*10%)	170800
	Common stock dividend distributable (122000*10*10%)		122000
	Paid-in Capital in Excess of Par—Common Stock		48800
31-Jul	Common stock dividend distributable	122000
	Commons Stock		122000
1-Dec	Retained Earnings (122000*1.1*.3)	40260
	Dividend payable		40260
31-Dec	Income summary	122000
	Retained Earnings		122000