Answer and Explanation:
February 1
Dr Dividends 113,000
Cr Dividend Payable 113,000
To record the declaration of cash dividends.
March 1
Dr Dividend Payable 113,000
Cr Cash 113,000
To record the payment of dividends previously declared.
April 1
No entry
July 1
Dr Dividends 169,500
Cr Stock Dividends Distributable 169,500
To record the declaration of stock dividends.
December 1
Dr Stock Dividends Distributable 169,500
Cr Common Stock 146,900
Cr Paid in Capital in Excess of Par 22,600
December 31
Dr Income and Expense Summary 398,500
Cr Retained Earnings 398,500
To record the net income.
December 31
Dr Retained Earnings 282,500
Cr Dividends 282,500
To close the dividends account.
