Problem - January 1, 2014, Lamar Corporation had these stockholders' equity accounts.
Common Stock ($20 par value, 80,000 shares issued and outstanding) - $1,600,000
Paid-in Capital in Excess of Par Value - 240,000
Retained Earnings - 750,000
During the year, the following transactions occurred.
Feb. 1 Declared a $1.00 cash dividend per share to stockholders of record on February 15, payable March 1.
Mar. 1 Paid the dividend declared in February.
July 1 Declared a 15% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $25 per share.
31 Issued the shares for the stock dividend.
Dec. 1 Declared a $1 per share cash dividend to stockholders of record on December 15, payable January 5, 2017.
31 Determined that net income for the year was $500,000. The market price of the common stock on this date was $32.
Instructions
(a) Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.)
(c) Total stockholders' equity $2,918,000
(b) Enter the beginning balances and post the entries to the stock-holders' equity T-accounts. (Note: Open additional stockholders' equity accounts as needed.)
(c) Prepare the stockholders' equity section of the balance sheet at December 31, 2017.