Answer Happy

On December 31, 2020, Blossom Corporation had the following shareholders' equity accounts: BLOSSOM CORPORATION Balance Sheet (partial) December 31, 2020 Shareholders equity Common shares (unlimited number of shares authorized, 94,000 issued) Retained earnings Total shareholders' equity During the year, the following transactions occurred: Jan. July $1.180,000 580,000 $1.760,000 8.18/25 15 Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15 1 Announced a 3-for-2 stock split. The market price per share on the date of the announcement was $12. 1
Retained earnings Total shareholders' equity 580,000 31 $1,760,000 During the year, the following transactions occurred: Jan. 15 Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15, July 1 Announced a 3-for-2 stock split. The market price per share on the date of the announcement was $12. Declared a 10% stock dividend to shareholders of record on December 30, distributable on January 15. On December 15, the market price of each share was $8; on December 30, $9; and on January 15, $8. Dec. 15 Determined that profit before income tax for the year was $439,000. The company has a 25% income tax rate.
Question 1 of 4 Part 2 Enter the beginning balances from the December 31, 2020, partial balance sheet. Post the entries in part (a) to the shareholders' equity accounts. (Note: Open additional shareholders' equity accounts as needed.) Date Explanation Ref. Jan. 1 Balance Date Explanation Ref. Dec. 15 J1 Debit Common Shares Credit Stock Dividends Distributable Debit Debit Credit Cash Dividends-Common 8.18/25 E Balance Balance Dalanes ⠀
Question 1 of 4 Date Dec. 31 Closing entry 31 Dec. 15 < Date > Explanation Ref. Dec. 31 Closing entry J1 Jan 1 Balance J1 Explanation Ref. V Dec. 31 Closing entry J1 Dec. 31 Closing entry J1 Stock Dividends Debit Retained Earnings Debit Credit Credit 8.18/25 EI Balance Balance ENG 10:38 1
6 Prepare the shareholders' equity section of the balance sheet at December 31, 2021. BLOSSOM CORPORATION Partial Balance Sheet