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Posted by: Homeworkhelp
Price Quoted by Student: $5
Posted On: 2011-01-24 05:05:39
 
Question

P12-4A Prepare dividend entries and stockholders' equity section.

 

P12-4A  Galactica Corporation

P12-4A  On January 1, 2006, Galactica 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 Value

200,000

Retained Earnings

500,000

 

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

Apr.    1

Announced a 5-for-1 stock split. Prior to the split, the market price per share was $35.

July    1

Declared a 5% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $7 per share.

July 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, 2007.

31

Determined that net income for the year was $380,000.

Instructions

Journalize the transactions and closing entries.


Solutions
Journal Entries: Date Account/Descript
Price $5
Attachment 1: P12-4A Galactica Corporation.doc
Solution Posted By: Homeworkhelp    Posted on: 24-01-2011