Respuesta :
Answer and Explanation:
The journal entries are shown below:
a. On Jan 15
Cash Dividend $91,952 (82,100 shares × $1.12)
To Dividend payable $91,952
(Being the dividend is declared is recorded)
b. On Feb 15
Dividend payable $91,952
To cash $91,952
(Being the dividend is paid)
c. On April 15
Stock Dividend $131,360 (82,100 shares × $16)
To Common stock dividend distributable $82,100 (82,100 shares × $10 × 10%)
To Paid in capital in excess of par - common stock $49,260
(Being the declaration of the stock dividend is recorded)
d. On May 15
Common stock dividend distributable $82,100 (82,100 shares × $10 × 10%)
To Common stock $82,100
(Being the issue of the shares for the stock dividend is recorded)
e. On July 1
No journal entry is required
f. On Dec 1
Cash Dividend $108,372 (180,620 shares × $0.60)
To Dividend payable $108,372
(Being the dividend is declared is recorded)
The 180,620 shares are come from
= (82,100 + 8,210) × 2
= $180,620
g. On Dec 31
Retained earnings $200,324 ($108,372 + $91,952)
To Dividend payable $200,324
(Being the cash dividend is closed)
h. On Dec 31
Retained earnings $131,360 (82,100 shares × $16)
To Stock dividend $131,360
(Being the stock dividend is closed)
i. On Dec 31
Income summary Dr $290,000
To Retained earning $290,000
(Being the net income is closed)
Only these journal entries are required
The journal entries are the initial step of the accounting system. They are defined as the book keeping system recording each business transactions in the books of accounts for the future use and recording purpose.
The journal entries gives dual effect of each business transaction. This balances the books of accounts.
The journal entries for the given transactions are recorded in the image attached below.
To know more about journal entries, refer to the link:
https://brainly.com/question/16590267
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