On January 1, 2012, Kristen Corporation had the following stockholders' equity accounts. Common stock ($20 par value, 60,000 shares issued and outstanding) $1,200,000, Paid-in Capital in Excess of Par-- Common Stock 200,000 and Reatained Earnings 600,000. During the Year, the following transactions occured.
Feb 1 Declared $1 cash dividend per share to stockholders of record on February 15, payable March 1 Mar 1 Paid the dividend declared in Feb Apr 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $36 Jul 1 Declared a 10% stock dividend to stockholders of record on jul 15, distributable jul 31. On July 1, the market price of the stock was $13 Jul 31 Issued the shares for the stock dividend Dec 1 Declared $0.50 per share dividend to stockholders of record on December 15, payable Jan 5, 2015 Dec 31 Determined that net income for the year was $350,000 Instructions
A. Journalize the transactions and the closing entry for net income
B. Enter the beginning balances, and post these entries to the stockholders' equity accounts
C. Prepare a stockholders' equtiyt section at Dec 31.