On January 1, 2022, Sheridan Corporation had the following stockholders’ equity accounts. Common Stock ($22 par value, 5
Posted: Fri Jul 01, 2022 8:28 am
On January 1, 2022, Sheridan Corporation had the followingstockholders’ equity accounts. Common Stock ($22 par value, 53,500shares issued and outstanding) $1,177,000 Paid-in Capital in Excessof Par—Common Stock 191,000 Retained Earnings 631,000 During theyear, the following transactions occurred. Feb. 1 Declared a $3cash dividend per share to stockholders of record on February 15,payable March 1. Mar. 1 Paid the dividend declared in February.Apr. 1 Announced a 2-for-1 stock split. Prior to the split, themarket price per share was $38. July 1 Declared a 10% stockdividend to stockholders of record on July 15, distributable July31. On July 1, the market price of the stock was $15 per share. 31Issued the shares for the stock dividend. Dec. 1 Declared a $0.30per share dividend to stockholders of record on December 15,payable January 5, 2023. 31 Determined that net income for the yearwas $367,500.
(a) Correct answer icon Your answer is correct. Journalize thetransactions and the closing entries for net income and dividends.(Credit account titles are automatically indented when amount isentered. Do not indent manually. If no entry is required, select"No Entry" for the account titles and enter 0 for the amounts.Record journal entries in the order presented in the problem.) DateAccount Titles and Explanation Debit Credit choose a transactiondate Feb. 1 enter an account title Cash Dividends enter a debitamount 160500 enter a credit amount enter an account titleDividends Payable enter a debit amount enter a credit amount 160500choose a transaction date Mar. 1 enter an account title DividendsPayable enter a debit amount 160500 enter a credit amount enter anaccount title Cash enter a debit amount enter a credit amount160500 choose a transaction date Apr.1 enter an account title NoEntry enter a debit amount enter a credit amount enter an accounttitle No Entry enter a debit amount enter a credit amount choose atransaction date July 1 enter an account title Stock Dividendsenter a debit amount 160500 enter a credit amount enter an accounttitle Common Stock Dividends Distributable enter a debit amountenter a credit amount 117700 enter an account title Paid-in Capitalin Excess of Par-Common Stock enter a debit amount enter a creditamount 42800 choose a transaction date July 31 enter an accounttitle Common Stock Dividends Distributable enter a debit amount117700 enter a credit amount enter an account title Common Stockenter a debit amount enter a credit amount 117700 choose atransaction date Dec. 1 enter an account title Cash Dividends entera debit amount 35310 enter a credit amount enter an account titleDividends Payable enter a debit amount enter a credit amount 35310choose a transaction date Dec. 31 enter an account title to closenet income Income Summary enter a debit amount 367500 enter acredit amount enter an account title to close net income RetainedEarnings enter a debit amount enter a credit amount 367500 (Toclose net income) choose a transaction date Dec. 31 enter anaccount title to close stock dividends Retained Earnings enter adebit amount 160500 enter a credit amount enter an account title toclose stock dividends Stock Dividends enter a debit amount enter acredit amount 160500 (To close stock dividends) choose atransaction date Dec. 31 enter an account title to close cashdividends Retained Earnings enter a debit amount 195810 enter acredit amount enter an account title to close cash dividends CashDividends enter a debit amount enter a credit amount 195810 (Toclose cash dividends) eTextbook and Media List of AccountsAttempts: 1 of 5 used
(b) Partially correct answer icon Your answer is partiallycorrect. Enter the beginning balances, and post the entries to thestockholders’ equity accounts. (Note: Open additional stockholders’equity accounts as needed.) (Post entries in the order of journalentries presented in the previous part.) Common Stock DateExplanation Ref Debit Credit Balance choose a transaction date Jan.1 Balance √ enter a debit amount enter a credit amount enter abalance amount 117700 choose a transaction date July 1 enter adebit amount enter a credit amount 117700 enter a balance amount1294700 Common Stock Dividends Distributable Date Explanation RefDebit Credit Balance choose a transaction date July 1 enter a debitamount enter a credit amount 117700 enter a balance amount 117700choose a transaction date July 31 enter a debit amount 117700 entera credit amount enter a balance amount 0 Paid-in Capital in Excessof Par—Common Stock Date Explanation Ref Debit Credit Balancechoose a transaction date Jan. 1 Balance √ enter a debit amountenter a credit amount enter a balance amount 191000 choose atransaction date July 1 enter a debit amount enter a credit amount42800 enter a balance amount 233800 Retained Earnings DateExplanation Ref Debit Credit Balance choose a transaction date Jan.1 Balance √ enter a debit amount enter a credit amount enter abalance amount 631000 choose a transaction date Dec. 31 Net incomeenter a debit amount enter a credit amount 367500 enter a balanceamount 998500 choose a transaction date Dec. 31 Stock dividendenter a debit amount 160500 enter a credit amount enter a balanceamount 838000 choose a transaction date Dec. 31 Cash dividend entera debit amount 195810 enter a credit amount enter a balance amount642190 Cash Dividends Date Explanation Ref Debit Credit Balancechoose a transaction date Jan. 1 enter a debit amount enter acredit amount enter a balance amount 0 choose a transaction dateFeb. 1 enter a debit amount 160500 enter a credit amount enter abalance amount 160500 choose a transaction date Dec. 1 enter adebit amount 35310 enter a credit amount enter a balance amount195810 Stock Dividends Date Explanation Ref Debit Credit Balancechoose a transaction date Jan. 1 enter a debit amount enter acredit amount enter a balance amount 0 choose a transaction dateJuly 1 enter a debit amount 160500 enter a credit amount enter abalance amount 160500 eTextbook and Media List of AccountsAttempts: 1 of 5 used
(c) New attempt is in progress. Some of the new entries mayimpact the last attempt grading. Your answer is partially correct.Prepare a stockholders’ equity section at December 31. (Enteraccount name only and do not provide descriptive information.)SHERIDAN CORPORATION Balance Sheet (Partial) choose the accountingperiod For the Year Ended December 31, 2022 select an openingsection name Stockholders' Equity select an opening subsection namePaid-in Capital select a name of subordinate part one of thissubsection Capital Stock enter a balance sheet item Common Stock$enter a dollar amount 1294700 select a name of subordinate parttwo of this subsection Additional Paid-in Capital enter a balancesheet item Cash Dividends enter a dollar amount 233800 select aclosing subsection name Paid-in Capital enter a total amount forthis subsection 1528500 enter a balance sheet item RetainedEarnings enter a dollar amount 642190 select a closing section nameTotal Stockholders' Equity $enter a total amount for this section2170690
(a) Correct answer icon Your answer is correct. Journalize thetransactions and the closing entries for net income and dividends.(Credit account titles are automatically indented when amount isentered. Do not indent manually. If no entry is required, select"No Entry" for the account titles and enter 0 for the amounts.Record journal entries in the order presented in the problem.) DateAccount Titles and Explanation Debit Credit choose a transactiondate Feb. 1 enter an account title Cash Dividends enter a debitamount 160500 enter a credit amount enter an account titleDividends Payable enter a debit amount enter a credit amount 160500choose a transaction date Mar. 1 enter an account title DividendsPayable enter a debit amount 160500 enter a credit amount enter anaccount title Cash enter a debit amount enter a credit amount160500 choose a transaction date Apr.1 enter an account title NoEntry enter a debit amount enter a credit amount enter an accounttitle No Entry enter a debit amount enter a credit amount choose atransaction date July 1 enter an account title Stock Dividendsenter a debit amount 160500 enter a credit amount enter an accounttitle Common Stock Dividends Distributable enter a debit amountenter a credit amount 117700 enter an account title Paid-in Capitalin Excess of Par-Common Stock enter a debit amount enter a creditamount 42800 choose a transaction date July 31 enter an accounttitle Common Stock Dividends Distributable enter a debit amount117700 enter a credit amount enter an account title Common Stockenter a debit amount enter a credit amount 117700 choose atransaction date Dec. 1 enter an account title Cash Dividends entera debit amount 35310 enter a credit amount enter an account titleDividends Payable enter a debit amount enter a credit amount 35310choose a transaction date Dec. 31 enter an account title to closenet income Income Summary enter a debit amount 367500 enter acredit amount enter an account title to close net income RetainedEarnings enter a debit amount enter a credit amount 367500 (Toclose net income) choose a transaction date Dec. 31 enter anaccount title to close stock dividends Retained Earnings enter adebit amount 160500 enter a credit amount enter an account title toclose stock dividends Stock Dividends enter a debit amount enter acredit amount 160500 (To close stock dividends) choose atransaction date Dec. 31 enter an account title to close cashdividends Retained Earnings enter a debit amount 195810 enter acredit amount enter an account title to close cash dividends CashDividends enter a debit amount enter a credit amount 195810 (Toclose cash dividends) eTextbook and Media List of AccountsAttempts: 1 of 5 used
(b) Partially correct answer icon Your answer is partiallycorrect. Enter the beginning balances, and post the entries to thestockholders’ equity accounts. (Note: Open additional stockholders’equity accounts as needed.) (Post entries in the order of journalentries presented in the previous part.) Common Stock DateExplanation Ref Debit Credit Balance choose a transaction date Jan.1 Balance √ enter a debit amount enter a credit amount enter abalance amount 117700 choose a transaction date July 1 enter adebit amount enter a credit amount 117700 enter a balance amount1294700 Common Stock Dividends Distributable Date Explanation RefDebit Credit Balance choose a transaction date July 1 enter a debitamount enter a credit amount 117700 enter a balance amount 117700choose a transaction date July 31 enter a debit amount 117700 entera credit amount enter a balance amount 0 Paid-in Capital in Excessof Par—Common Stock Date Explanation Ref Debit Credit Balancechoose a transaction date Jan. 1 Balance √ enter a debit amountenter a credit amount enter a balance amount 191000 choose atransaction date July 1 enter a debit amount enter a credit amount42800 enter a balance amount 233800 Retained Earnings DateExplanation Ref Debit Credit Balance choose a transaction date Jan.1 Balance √ enter a debit amount enter a credit amount enter abalance amount 631000 choose a transaction date Dec. 31 Net incomeenter a debit amount enter a credit amount 367500 enter a balanceamount 998500 choose a transaction date Dec. 31 Stock dividendenter a debit amount 160500 enter a credit amount enter a balanceamount 838000 choose a transaction date Dec. 31 Cash dividend entera debit amount 195810 enter a credit amount enter a balance amount642190 Cash Dividends Date Explanation Ref Debit Credit Balancechoose a transaction date Jan. 1 enter a debit amount enter acredit amount enter a balance amount 0 choose a transaction dateFeb. 1 enter a debit amount 160500 enter a credit amount enter abalance amount 160500 choose a transaction date Dec. 1 enter adebit amount 35310 enter a credit amount enter a balance amount195810 Stock Dividends Date Explanation Ref Debit Credit Balancechoose a transaction date Jan. 1 enter a debit amount enter acredit amount enter a balance amount 0 choose a transaction dateJuly 1 enter a debit amount 160500 enter a credit amount enter abalance amount 160500 eTextbook and Media List of AccountsAttempts: 1 of 5 used
(c) New attempt is in progress. Some of the new entries mayimpact the last attempt grading. Your answer is partially correct.Prepare a stockholders’ equity section at December 31. (Enteraccount name only and do not provide descriptive information.)SHERIDAN CORPORATION Balance Sheet (Partial) choose the accountingperiod For the Year Ended December 31, 2022 select an openingsection name Stockholders' Equity select an opening subsection namePaid-in Capital select a name of subordinate part one of thissubsection Capital Stock enter a balance sheet item Common Stock$enter a dollar amount 1294700 select a name of subordinate parttwo of this subsection Additional Paid-in Capital enter a balancesheet item Cash Dividends enter a dollar amount 233800 select aclosing subsection name Paid-in Capital enter a total amount forthis subsection 1528500 enter a balance sheet item RetainedEarnings enter a dollar amount 642190 select a closing section nameTotal Stockholders' Equity $enter a total amount for this section2170690