enter the beginning balances and post the entries to the stockholders equity account 581390

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

Retained Earnings

600,000

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 $36.

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 $13 per share.

.

31

Issued the shares for the stock dividend.

Dec

1

Declared a $0.50 per share dividend to stockholders of record on December 15, payable

January 5, 2013.

31

Determined that net income for the year was $350,000.

Declared a $1 cash dividend per share to stockholders of record on February 15, payable

Instructions

(a) Journalize the transactions and the closing entry for net income.

(b) Enter the beginning balances, and post the entries to the stockholders’ equity accounts.

(c) Prepare a stockholders’ equity section at December 31.