Question

Problem 14-01A a-c (Video) On January 1, 2020, Collumber Corporation had the following stockholders' equity accounts Common Stock ($24 par value, 59,000 shares issued and outstanding) $1,416,000 Paid in Capital in Excess of Par-Common Stock 197.000 Retained Earnings 559,000 During the year, the following transactions occurred. Feb. 1 Declared a $3 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. 1 Pald the dividend declared in February Apr 1 Announced a 2 for 1 stock split. Prior to the split, the market price per share was $39. July 1 Declared a 15% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share. 31 issued the shares for the stock dividend. Dec. 1 Declared a $0.60 per share dividend to stockholders of record on December 15, payable January 5, 2021. 31 Determined that net income for the year was $332,500.

Answer 1

Date	Account titles & Explanations					Debit	Credit
1-Feb	Cash dividend					177,000
	dividends payable		59000*3				177,000
1-Mar	Dividends payable					177000
	Cash						177000
1-Apr	no entry	(118,000 shares at $12 par value)
1-Jul	Stock dividend		(17700*14)			247800
	Stock dividend distributable			(17700*12)			212,400
	paid in capital in excess of par -CS						35400
	(118,000*15%=17700 shares)
31-Jul	Stock dividend distributable					212400
	common stock						212400
1-Dec	Cash dividend					81420
	dividends payable						81420
	(135700*.6)
31-Dec	income summary					332,500
	retained earnings						332,500
31-Dec	retained earnings					247,800
	Stock dividend						247,800
31-Dec	Retained earnings					258,420
	cash dividend						258,420
b)
	Common stock
	Date	Explanation	Ref	Debit	Credit	Balance
	1-Jan	Bal				1,416,000
	31-Jul				212400	1,628,400
	Common stock dividend distributable
	Date	Explanation	Ref	Debit	Credit	Balance
	1-Jul				212,400	212,400
	31-Jul			212400		0
	Paid in capital in excess of par value
	Date	Explanation	Ref	Debit	Credit	Balance
	1-Jan	Bal				197,000
	1-Jul				35400	232,400
	Retained earnings
	Date	Explanation	Ref	Debit	Credit	Balance
	1-Jan	Bal				559,000
	31-Dec				332,500	891,500
	31-Dec			247,800		643,700
	31-Dec			258,420		385,280

Cash Dividend
Date	Explanation	Ref	Debit	Credit	Balance
1-Jan	Bal				0
1-Feb			177,000		177,000
1-Dec			81420		258,420
Stock Dividend
Date	Explanation	Ref	Debit	Credit	Balance
1-Jan	Bal				0
1-Jul			247,800		247,800

c)		Balance sheet (Partial)
	Stockholder's Equity
	Paid in capital
	Capital stock
	Common stock ,$12 par value ,135700 shares issued
	and outstanding					1,628,400
	Addittional paid in capital
	in excess of par value					232,400
	Total paid in capital					1,860,800
	Retained earnings					385,280
	Total stockholder's Equity					2,246,080