Question

SOURCES Problem 11-04 - (Video) (Part Level Submission) On January 1, 2020, Whispering Winds Corp. had the following stockholders' equity accounts Common Stock (520 par value, 63,500 shares issued and outstanding) Paid-in Capital in Excess of Par-Common Stock Retained Earnings $1,270,000 197,000 564,000 During the year, the following transactions occurred. by Study s h are Feb. 1 Mar 1 Apr. July 1 31 Dec 31 Declared a $2 cash dividend per share to stockholders of record on February 15 payable March 1 Paid the dividend declared in February Announced a 2 for 1 stock split. Prior to the spit, the market price per share was Declared a 15% stock dividend to stockholders of record on May 15, distribute July 31. On My 1the market price of the Tused the shares for the stock dividend Dedared a $0.60 per share dividend to stockholders of record on December 15, payable anuary 5, 2021 Determined that net income for the year was $300,500 y Journalue the transactions and the dosing entries for net income and dividends (Cretaceounties are ma ally indeed w a required weet "No try for the account titles and enter for the amount Bened journal entries in the order presented in the Date Account Titles and Explanation

Journalize the transactions and the closing entirs for ner income and dividends.

Answer 1

8 Credit Debit 127,000 Date Account Title & Explanation 1-Feb Cash Dividends (63500)*2 Cash Dividends Payable (To record declaration of dividend) 127,000 127,000 1-Mar Cash Dividends Payable Cash (To record payment of dividend) 127,000 1-Apr No Journal Entry 285,750 1-Jul Stock Dividends (63500*2)*15%*15 Stock Dividends Distributable (63500*2)*15%*10 Paid-In Capital in Excess of Par-Common Stock (To record issue of stock dvidend) 190,500 95,250 190,500 31-Jul Stock Dividends Distributable Common Stock (To record issue of common stock dvidend) 190,500 87,630 1-Dec Cash Dividends (63500*2+19050)*0.60 Cash Dividends Payable (To record declaration of dividend) 87,630

300,500 31-Dec Income Summary Retained Earnings (To record transfer of net income) 300,500 500,380 31-Dec Retained Earnings Stock Dividends Cash Dividends (To record transfer of dividends) 285,750 214,630