Problem 11-8A - EVERETT CORPORATION – Stockholder’s Equity

Common Stock ($10 par value, 72,100 shares issued and outstanding)

$721,000

Paid-in Capital in Excess of Par Value

500,800

Retained Earnings

687,600

Jan. 15

Declared a $0.50 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.

Dec. 1

Declared a $0.60 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 $439,900.

Required:

1.       Journalize the transactions

2.       Enter the beginning balances and post the entries to the stockholders’ equity T-accounts.

3.       Prepare the stockholders’ equity section of the balance sheet at December 31.