Problem 11-7A (Part Level Submission)
On January 1, 2014, Primo Corporation had the following stockholders' equity accounts.
Common Stock ($10 par value, 80,900 shares issued and outstanding) $809,000
Paid-in Capital in Excess of Par Value-Common Stock
201,900
Retained Earnings 506,200
During the year, the following transactions occurred.
Jan. 15 Declared a $1.20 cash dividend per share to stockholders of record on January 31, payable February 15.
Feb. 15 Paid the dividend declared in January.
Apr. 15 Declared a 5% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $15 per share.
May 15 Issued the shares for the stock dividend.
July 1 Announced a 2-for-1 stock split. The market price per share prior to the announcement was $14. (The new par value is $5.)
Dec. 1 Declared a $0.90 per share cash dividend to stockholders of record on December 15, payable January 10, 2015.
Dec. 31 Determined that net income for the year was $290,500.