Question

Problem 11-04A a-c (Video) (Part Level Submission) On January 1, 2020, Cheyenne Corp. had the following stockholders' equity accounts. Common Stock ($22 par value, 60,500 shares issued and outstanding) Paid-in Capital in Excess of Par–Common Stock Retained Earnings $1,331,000 197,000 556,000 During the year, the following transactions occurred. Feb. 1 Declared a $1 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 $39. July 1 Declared a 10% 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 $0.40 per share dividend to stockholders of record on December 15, payable January 5, 2021. 31 Determined that net income for the year was $354,000.

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Answer 1

Journal entries:
S.no.	Accounts title and explanations		Debit $	Credit $
Feb-01	Dividend account			60,500
	Dividend payable (60500*1)			60,500.00
Mar-01	Dividend payable			60,500.00
	Cash account				60,500.00
Apr-01	No entry
Jul-01	Stock dividend (12100 shares @14)	1,69,400.00
	Common Stock Dividend distributable (12100*11)	1,33,100
	Paid in Excess of Par-Cmmon Stock (12100*3)	36300
Jul-31	Common Stock dividend distributable	1,33,100
	Common Stock capital			1,33,100
Dec-01	Dividend (121000+12100)*0.40		53,240.00
	Dividend payable				53,240.00
Dec-31	Income summary			3,54,000.00
	Retained earnings				3,54,000.00
	(for closing net income)
Dec-31	Retained earnings			1,69,400.00
	Stock dividend				1,69,400
	(for closing stock dividend)
Dec-31	Retained earnings (60500+53240)		113740
	Dividend account				1,13,740
	(for closing dividend account)