Question

CALCULATOR PRINTER VERSION BACK NEXT Problem - Part Level Submission) (Video) On January 1, 2020, Pharoah Corporation had the following stockhok Common Stock ($26 par value, 62,000 shares issued and outstanding Paid-in Capital in Excess of Par-Common Stock 6 Retained Earnings . During the year, the following transactions occurred. Feb. 1 Declared a $2 cash dividend per share ders 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 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 $327,000. Your answer is partially correct. Try again. Journalize the transactions and the closing entries for net income and dividends. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Debit Account Titles and Explanation Cash Dividends Credit 124000 TL Feb. 1

Answer 1

Answer

--Only Journal entry on Jul 1 and Jul 31 is INCORRECT.

Date	Accounts title	Debit	Credit
Jul-01	Stock Dividends [Correct]	$260,400
	Common Stock dividend distributable [62000 shares x 15% dividend x $ 26 par]		$241,800
	Paid in Capital in excess of Par - Common Stock [260400 - 241800]		$18,600
	(to record declaration of stock dividend)
Jul-31	Common Stock dividend distributable	$241,800
	Common Stock		$241,800
	(to record distribution)