A.) 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 (To close net income) (To close stock dividends) (To close cash dividends) B.) Enter the beginning balances, and post the entries to the stockholders’ equity accounts. (Use T-accounts.) (Note: Open additional stockholders’ equity accounts as needed.) Common Stock Retained Earning Paid-in Capital in Excess of Par Value-Common Common Stock Dividends Distributable Cash Dividends Stock Dividends C.) Prepare a stockholders’ equity section at December 31. Skysong, Inc. Balance Sheet (Partial)
A.) 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 (To close net income) (To close stock dividends) (To close cash dividends) B.) Enter the beginning balances, and post the entries to the stockholders’ equity accounts. (Use T-accounts.) (Note: Open additional stockholders’ equity accounts as needed.) Common Stock Retained Earning Paid-in Capital in Excess of Par Value-Common Common Stock Dividends Distributable Cash Dividends Stock Dividends C.) Prepare a stockholders’ equity section at December 31. Skysong, Inc. Balance Sheet (Partial)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 84PSA: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...
Related questions
Question
On January 1, 2020, Skysong, Inc. had the following stockholders’ equity accounts.
During the year, the following transactions occurred.
Common Stock ($26 par value, 50,000 shares issued and outstanding) | $1,300,000 | |
Paid-in Capital in Excess of Par—Common Stock | 199,000 | |
558,000 |
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 $37. | |
July 1 | 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. | |
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 $344,000. |
A.) 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(To close net income)
|
|||
|
|
|
|
|
|
|
|
(To close stock dividends)
|
|||
|
|
|
|
|
|
|
|
(To close cash dividends)
|
B.) Enter the beginning balances, and
Common Stock
|
|||||||||||||
|
|
||||||||||||
Retained Earning
|
|||||||||||||
|
|
||||||||||||
Paid-in Capital in Excess of Par Value-Common
|
|||||||||||||
|
|
||||||||||||
Common Stock Dividends Distributable
|
|||||||||||||
|
|
||||||||||||
Cash Dividends
|
|||||||||||||
|
|
||||||||||||
Stock Dividends
|
|||||||||||||
|
|
C.) Prepare a stockholders’ equity section at December 31.
Skysong, Inc.
Balance Sheet (Partial) |
||||
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning