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Problem 11-7A (Part Level Submission)
On January 1, 2017, Primo Corporation had the following stockholders' equity accounts.
Common Stock ($12 par value, 81,700 shares issued and outstanding) $980,400
Paid-in Capital in Excess of Par Value-Common Stock
Retained Earnings
During the year, the following transactions occurred.
214,000
527,000
Jan. 15 Declared a $1.00 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. (The new par value is $6.)
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 $15.
Dec. 1 Declared a $0.70 per share cash dividend to stockholders of record on December 15, payable January 10, 2018.
Dec. 31 Determined that net income for the year was $250,000.
(a)
Journalize the transactions and the closing entries for net income and dividends. (Record journal entries in the order presented in the general journal. Account
account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
