enter the beginning balances and post the entries to the stockholders equity account 581395

On January 1, 2012, Syed Corporation had the following stockholders’ equity accounts

Common Stock ($5 par value, 200,000 shares issued and outstanding)

$1,000,000

Paid in Capital in Excess of Par—Common Stock

200,000

Retained Earnings

840,000

During the year, the following transactions occurred.

Jan.

15

Declared a $1 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 10% 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 $17. (The new par value is $2.50.)

Dec.

1

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

payable January 10, 2013.

31

Determined that net income for the year was $250,000.

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.