Answer and Explanation:
The journal entries are shown below:
a. On Jan 15
Cash Dividend $91,952 (82,100 shares × $1.12)
To Dividend payable $91,952
(Being the dividend is declared is recorded)
b. On Feb 15
Dividend payable $91,952
To cash $91,952
(Being the dividend is paid)
c. On April 15
Stock Dividend $131,360 (82,100 shares × $16)
To Common stock dividend distributable $82,100 (82,100 shares × $10 × 10%)
To Paid in capital in excess of par - common stock $49,260
(Being the declaration of the stock dividend is recorded)
d. On May 15
Common stock dividend distributable $82,100 (82,100 shares × $10 × 10%)
To Common stock $82,100
(Being the issue of the shares for the stock dividend is recorded)
e. On July 1
No journal entry is required
f. On Dec 1
Cash Dividend $108,372 (180,620 shares × $0.60)
To Dividend payable $108,372
(Being the dividend is declared is recorded)
The 180,620 shares are come from
= (82,100 + 8,210) × 2
= $180,620
g. On Dec 31
Retained earnings $200,324 ($108,372 + $91,952)
To Dividend payable $200,324
(Being the cash dividend is closed)
h. On Dec 31
Retained earnings $131,360 (82,100 shares × $16)
To Stock dividend $131,360
(Being the stock dividend is closed)
i. On Dec 31
Income summary Dr $290,000
To Retained earning $290,000
(Being the net income is closed)
Only these journal entries are required
