Problem 114A Part Level Submission On January 1 2019 Geffrey

Problem 11-4A (Part Level Submission)

On January 1, 2019, Geffrey Corporation had the following stockholders’ equity accounts.

During the year, the following transactions occurred.

Determined that netnincome for the year was $350,000.

Enter the beginning balances, and post the entries to the stockholders’ equity accounts. (Use T-accounts.) (Post entries in the order of journal entries presented in the previous part. Select the date for closing balances even in case of zero balance.)

Common Stock ($20 par value, 60,000 shares issued and outstanding)		$1,200,000
Paid-in Capital in Excess of Par—Common Stock		200,000
Retained Earnings		600,000

Solution

Common Stock Date Account Titles and Explanation Debit Credit Date Explantion Ref Debit Credit Balance Feb 1 Cash Dividends 60,000 Jan 1 Balance ü    1,200,000 Dividends Payable 60,000 July 31 Adjusting    120,000    1,320,000 Mar 1 Dividends Payable 60,000 Common Stock Dividends Distributable Cash 60,000 Date Explantion Ref Debit Credit Balance July 1    120,000       120,000 Apr 1 No Entry July 31    120,000 No Entry 0 Paid-in Capital in Excess of Par—Common Stock July 1 Stock Dividends (60000 x 2 x 10% x $13) 156,000 Date Explantion Ref Debit Credit Balance Paid-in Capital in Exces 36,000 Jan 1 Balance ü       200,000 Common Stock Dividend 120,000 July 1      36,000       236,000 July 31 Common Stock Dividends 120,000 Retained Earnings Common Stock 120,000 Date Explantion Ref Debit Credit Balance Jan 1 Balance ü       600,000 Dec 1 Cash Dividends(6000 x 2 *110%*$0.50) 66,000 Dec 31 Net Income    350,000       950,000 Dividends Payable 66,000 Dec 31 Stock dividend    156,000       794,000 Dec 31 Cash dividend    126,000       668,000 Dec 31 Income Summary 350,000 Retained Earnings 350,000 Cash Dividends (To close net income) Date Explantion Ref Debit Credit Balance Feb 1      60,000          60,000 Dec 31 Retained Earnings 156,000 Dec 1      66,000       126,000 Stock Dividends 156,000 Dec 31    126,000 (To close stock dividends) Stock Dividends Dec 31 Retained Earnings 126,000 Date Explantion Ref Debit Credit Balance Cash Dividends 126,000 July 1    156,000       156,000 (To close cash dividends) Dec 31    156,000