Problem 117A Part Level Submission On January 1 2017 primo C

Problem 11-7A (Part Level Submission) On January 1, 2017, primo Corporation had the following stockholders\' equity accounts. Common Stock ($10 par value, 75,000 shares issued and outstanding) $750,000 Paid-in Capital in Excess of Par Value-Common Stock Retained Earnings 200,000 540,000 During the year, the following transactions occurred. Jan. 15 Declared a $1 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January Apr 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $14 per share. May 15 Issued the shares for the stock dividend. lAnnounced a 2-for-1 stock split. The market price per share prior to the announcement was $15. (The new par value is $5.) Dec. 1 Declared a $o.6 per share cash dividend to stockholders of record on December 15, payable January 10, 2018. Dec. 31 Determined that net income for the year was $250,000. Your answer is partially correct. Try again. Journalize the transactions and the closing entries for net income and dividends. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select \"No Entry\" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit 75000 Jan. 15 Cash Dividends

Solution

Date General Journal Debit Credit 15-Jan Cash Dividends            75,000 Dividends payable            75,000 75000*1 15-Feb Dividends payable            75,000 Cash            75,000 15-Apr Stock Dividends 75000*10%*14          105,000 Common Stock Dividends Distributable            75,000 Paid-on Capital in excess of par value            30,000 15-May Common Stock Dividends Distributable            75,000 Common Stock            75,000 01-Jul No entry 01-Dec Cash Dividend            99,000 Dividends Payable            99,000 (75000+7500)*2 = 165000*.6 31-Dec Income Summary          250,000 Retained Earnings          250,000