On January 1, 2012, Kristen Corporation had the following stockholders\' equity

Question

On January 1, 2012, Kristen Corporation had the following stockholders' equity accounts. Common Stock ($24 par value, 55,000 shares issued and outstanding) $1,320,000 Paid-in Capital in Excess of Par Value 194,400 Retained Earnings 627,400 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 $32. July 1 Declared a 12 %stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $18 per share. July 31 Issued the shares for the stock dividend. Dec. 1 Declared a $0.5 per share dividend to stockholders of record on December 15, payable January 5, 2013. Dec. 31 Determined that net income for the year was $332,570. Please help me journalize the transaction, Enter the beginning balances, and post the entries to the stockholders' equity accounts. and Prepare a stockholders' equity section at December 31.

Explanation / Answer

Feb.1 Cash(Dr) $25,000 Common stock(Cr) $15,000 Paid-in capital in excess of par value(Cr) $10,000 Mar.20 Treasury stock(Dr) $12,000 Cash(Cr) $12,000 June 14 Cash(Dr) $36,000 Treasury stock(Cr) $32,000 Paid-in capital from treasury stock(cr) $4,000

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